RCS Queries and reply thereto
The following queries received from prospective bidders on MSTC RCS UDAN web portal/RCS email and the replies are below for uploading on the e-bid portal for
information of prospective bidders:
S.N. Query from bidders/stakeholders
1 Consider an existing NSOP operator with a fleet of Fixed Wing Twin and
Single engine aircraft and helicopters.
Now they wish to bid for a few Routes to unserved Airports with one
aircraft.
We have been given to understand that they need to obtain a
Scheduled Commuter Air Operator (SCO) Certificate to commence RCS
operations. In order to obtain the SCO permit we need to set up a full-
fledged Organization with Accountable Manager, CEO, CFO, COO, QM, CAM
etc.
At the same time, we wish to run the NSOP as we need to operate
Charters with Single Engine aircraft and helicopters. An NSOP also needs to
employ an Accountable Manager, CEO, CFO, COO, QM, CAM etc.
Please advise whether we can combine and operate both permits under
SCO, NSOP and the same individuals can hold the same post in both
organizations.
Alternatively, if we convert the existing NSOP to SCO, then can one
aircraft operate under RCS and the rest be flown for charters including
Single Engine on nonscheduled ops.
Also, as an independent SCO in 3 years one needs to acquire 3 aircraft
and this NSOP already has say 5 aircraft. If permission is not given for the
SCO to have Single Engine aircraft on its inventory then we will need to
maintain both SCO permit and NSOP permit as well as 2 sets of manpower
and ensure at-least 3 aircraft in SCO.
2 Why has the RCS document of 5 Dec been modified stating that only
SCO can operate under RCS? Earlier an NSOP under could operate RCS
routes under its AOP.
Please advise as we are keen to bid for UDAN but at the same time
optimally use our manpower.
Page 1 of 4
Reply
The NSOP in such case has the option of
1.1. Obtaining a separate AOP under SCO category after complying with all the
applicable requirements as per CAR (SCO): the operator concerned can maintain
two separate AOP compliant with applicable requirements including for paid-up
capital requirements under two separate entities/organization with required post
holders; or
1.2. Surrendering their NSOP and obtaining a new AOP (SCO category) after
complying with all the applicable requirements as per CAR (SCO). The operator
holding SCO permit can undertake charter flights and non-scheduled operations
under para 10.15 of CAR Section 3 Series C Part XII (SCO CAR). However, only
multiengine aircraft can be endorsed/operated on such SCO Permit under Para 6.1
of ibid CAR.
2. For the existing NSOP holders having single engine aircraft in their fleet and
exercising option 1.2 above, a dispensation can be considered subject to the
approval from MoCA, so as to allow such NSOP holders to continue to operate their
existing single engine aircraft on their new SCO permit for charter/non-scheduled
operation subject to compliance of conditions of paid up capital for the whole fleet
as per SCO CAR, and that such single engine aircraft shall not be counted for
compliance of the requirement of 3 multi-engine aircraft in 3 years as per para 6.2.
of SCO CAR, and any other such condition as may be deemed fit.
In earlier document, the requirement specified was that operations will be
permitted by airline operators having valid Air Operator Permit (AOP) issued by
th
DGCA. In the 5 December version, the Scheme only clarifies for the valid AOP from
DGCA i.e. SCO permit holder or SOP holder. Since this is a mandatory requirement
now, while the bidders having NSOP can bid but before the commencement of

3 To participate with a 9 seater Single Engine Cessna Grand Caravan 208B
Aircraft. Can such bidders submit the bid under RCS.
OR
Please advise is there any restriction on type of aircraft being
twin engine or we can submit bid with single aircraft. Also confirm that as
per the RCS policy, its allows a NSOP holders to bid but new CAR alludes to
need to have SCA permit. Request kindly advise, will RCS policy allow NSOP
holder to operate and bid without applying for SCA?
4 Reference to serial number 14.5 of NIP, wherein it is mentioned that an
Airline will have to furnish an additional performance guarantee of 1 Crore
for every RCS airport for which Airport operator is required to spend 5
Crore & more for the rehabilitation/up gradation of Airport. Need a clarity
on the below mentioned points.
# Which are the airports falling under this Regional Connectivity Scheme
which needs investment of 5 Cr. & more.
# What will be time period of Performance Guarantee.
Page 2 of 4
operations, they will need to obtain an SCO permit or SOP. Further, it is advised that
reply at S.N.1 may be referred.
Please refer clause 3.2.1.3 under Eligibility Criteria for Proposals of RCS
document; bidders who are having valid a) SOP, b) NSOP/RSOP, c) foreign country
AOP or d) Entities which do not have a valid AOP at the time of bidding but which
have applied for an initial No Objection Certificate (NOC) to MoCA for obtaining Air
Operator Certificate (AOC) for Scheduled Commuter Air Transport Services before the
last date of Submission of Initial Proposals of the respective bidding cycle. If 3.2.1.3
b), c) or d) above is identified as the Selected Airline Operator, such Applicant must
obtain a valid AOC for Scheduled Commuter Air Transport Services from DGCA before
commencement of operations under RCS. The Selected Airline Operator shall be
required to commence the RCS Flight operations within a period of six (6) months
from the execution of contract to be executed for operations under RCS.
As per CAR issued by DGCA for; Requirements For Grant Of Air Operator
Certificate For Scheduled Commuter Air Transport Services, operations are
permitted only with a multi- engine aircraft having an AUW upto 5700 Kg for
Scheduled Commuter Operator (Small) and AUW more than 5700 kg and upto
40,000 kg for Scheduled Commuter Operator (Large). Therefore, operations
through single engine aircraft are not permitted under the Scheme.
# Please refer clause 3.4.3 & 3.4.3 of Regional Connectivity Scheme uploaded on e-
bid portal of MSTC UDAN-Regional Connectivity as below;
3.4.3 “Applicants are advised to undertake their own due diligence, market
assessment, investigations and analyses including the suitability of the
airports for RCS Flight operations being proposed by them and would bear
full responsibility for the accuracy, adequacy, correctness, reliability and
completeness of the assumptions, data & information considered by them.
The MoCA, Implementing Agency, concerned State Governments,
concerned airport operators, or any other agency supporting any of these
entities shall not bear any responsibility for any inaccuracy or lack of data /
information for the proposed RCS Flight operations by the Applicants” and

5 As per Regional Connectivity Scheme's Clause 1.4.1.14 c) under "RCS
Route” the stage length between the origin and destination airports is not
less than 150 km for operation through fixed wing aircraft. Whereas in
tables at Annexure-2 Airfare cap; and Annexure-3: VGF Cap in the RCS
document stage length for lowest slab for Airfare cap and for VGF cap is
available from 151km. Stage length betweenBhopal and Ujjain is 150 km.
Is route between Bhopal and Ujjain a RCS route for consideration of
Airfare cap and VGF cap under the Scheme?
6 Please refer 3.15.2 clause under Performance Guarantee in RCS
document; At the time of signing the contract, the Selected Airline
Operator will be required to submit a Performance Guarantee to the
Implementing Agency for an amount equivalent to five percent (5%) of the
total VGF amount to be provided to such Selected Airline Operator in the
first year of its operations, subject to a minimum of Rs. Five lakhs (Rs. 5,
00,000/-) per RCS Route.
Under clause 14.4 of Notice Inviting Proposals is the Selected Airline
Operator will be required to submit to the Authority, a Performance
Guarantee, in the format prescribed in Annexure-VI for an amount
equivalent
to the higher of (a) 5% (five percent) of the total VGF amount to be
provided
Such Selected Airline Operator in the first year of its operations; or (b)
the relevant amount prescribed for Proposal Security (as per Clause 14.1)
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3.4.4 “Applicants alone shall bear all costs associated with or relating to
the preparation and submission of their proposals or any other costs
incurred in connection with or relating to their proposals. All such costs
and expenses will remain with the Applicants and the MoCA and/or the
Implementing Agency or any other agency shall not be liable in any
manner whatsoever to bear or reimburse any costs or other expenses
incurred by the Applicants in preparation or submission of proposals,
regardless of the conduct or outcome of the selection process specified
under the Scheme”.
# For the other query, the bidder can have reference to the Clause 3.15.4.2 under
the Scheme.
As per the Annexure -2: Airfare cap and Annexure-3 VGF Cap in RCS document,
Airfare cap and the VGF cap for fixed wing aircraft are available for stage lengths
beyond 150 km, i.e., 151 km and onwards. Additionally, as per the deliberations /
discussions undertaken with the MoCA, the intent is to not provide any VGF for
stage lengths lesser than or equal to 150 km.
In view above, it is decided that as Airfare cap and VGF cap shall be available
for stage length above 150 km. Therefore, RCS flight operation may be permitted
beyond above 150 km i.e. 151 km or more.
Please refer 3.15.2 clause under Performance Guarantee in RCS document; At
the time of signing the contract, the Selected Airline Operator will be required to
submit a Performance Guarantee to the Implementing Agency for an amount
equivalent to five percent (5%) of the total VGF amount to be provided to such
Selected Airline Operator in the first year of its operations, subject to a minimum of
Rs. Five lakhs (Rs. 5, 00,000/-) per RCS Route.
Clause 14.4 of Notice Inviting Proposals should be read as “Selected Airline
Operator will be required to submit to the Authority, a Performance Guarantee, in
the format prescribed in Annexure-VI for an amount equivalent to the higher of (a)
5% (five percent) of the total VGF amount to be provided to Such Selected Airline
Operator in the first year of its operations subject to a minimum of Rs. Five lakhs
(Rs. 5, 00,000/-) per RCS Route or (b) the relevant amount prescribed for Proposal
Security (as per Clause 14.1 i.e.Rs.5 lakhs or Rs.20 lakhs)..
 Provided that, after the commencement of RCS Flight operations, the
Selected Airline Operator shall be entitled to replace its Performance
Guarantee with another Performance Guarantee of an amount equivalent
to 5% (five percent) of the total VGF amount to be provided to such
Selected Airline Operator in the first year of its operations and the same
validity period. In such a case, the Authority shall return the previously
submitted Performance Guarantee within a period of 7 days to the
Selected Airline Operator. and
Clause 4.2 of Selected Airline Operator Agreement is ; After the
commencement of RCS Flight operations, the Selected Airline Operator shall
be entitled to replace its Performance Guarantee with another Performance
Guarantee of an amount equivalent to 5% (five percent) of the total VGF
amount to be provided to such Selected Airline Operator in the first year of
its operations and for the same validity period. In such a case, the Authority
shall return the previously submitted Performance Guarantee within a
period of seven (7) days to the Selected Airline Operator.
For what amount of Performance Guarantee is to be provided?
Page 4 of 4
Provided that, after the commencement of RCS Flight operations, the Selected
Airline Operator shall be entitled to replace its Performance Guarantee with another
Performance Guarantee of an amount equivalent to 5% (five percent) of the total
VGF amount to be provided to such Selected Airline Operator in the first year of its
operations subject to Rs. 5(five) lakhs per RCS Route and for the validity period of
one year plus 30 (thirty) days from operation the commencement of RCS flight. In
such a case, the Authority shall return the previously submitted Performance
Guarantee within a period of 7 days to the Selected Airline Operator. and
Clause 4.2 of Selected Airline Operator Agreement may be read as; “After the
commencement of RCS Flight operations, the Selected Airline Operator shall be
entitled to replace its Performance Guarantee with another Performance Guarantee
of an amount equivalent to 5% (five percent) of the total VGF amount to be provided
to such Selected Airline Operator in the first year of its operations or Rs. 5(five) lakhs
per RCS route whichever is higher and for the validity period of one year plus 30
(thirty) days. In such a case, the Authority shall return the previously submitted
Performance Guarantee within a period of seven (7) days to the Selected Airline
Operator.