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CHANAKYA NATIONAL LAW

UNIVERSITY, PATNA

PROJECT OF CONSTITUTIONAL LAW-I


INDIA AS A SOVEREIGN DEMOCRATIC REPUBLIC

SUBMITTED TO: -
Dr. Anirudh Prasad
FACULTY OF Constitutional Law-I

SUBMITTED BY: -
ADITYA VIJAY SINGH
ROLL NO. -1507
B.A. LL. B
5TH SEMESTER
ACKNOWLEDGEMENT

Writing a project is one of the most significant academic challenges, I have ever
faced. Though this project has been presented by me but there are many people
who remained in veil, who gave their all support and helped me to complete this
project.

First, I am very grateful to my subject teacher DR. ANIRUDH PRASAD


without the kind support of whom and help the completion of the project was a
herculean task for me. He donated his valuable time from his busy schedule to
help me to complete this project and suggested me from where and how to
collect data.

I acknowledge my friends who gave their valuable and meticulous advice which
was very useful and could not be ignored in writing the project. I want to
convey most sincere thanks to my 4th year senior Shri Ashutosh Kashyap, for
helping me throughout the project.

Last but not the least, I am very much thankful to my parents and family, who
always stand aside me and helped me a lot in accessing all sorts of resources.

I thank all of them!

Aditya Vijay Singh

R.No.1507,
SEMESTER 5TH
B.A.L.L.B. (Hons.)
CONTENTS

ACKNOWLEDGEMENT.................................................................................... 2

1. INTRODUCTION ........................................................................................ 4

1.1. Objective of study ..................................................................................... 5

1.2. Research Methodology ............................................................................. 5

1.3. Formatting Methodology.......................................................................... 5

1.4. Scope of my study ..................................... Error! Bookmark not defined.

1.5. Limitation of the Study ............................................................................. 5

1.6. hypothesis ................................................................................................. 5

2. HISTORICAL BACKGROUND ................... Error! Bookmark not defined.

3. THE UDAN SCHEME ................................. Error! Bookmark not defined.

4. Why UDAN? .............................................................................................. 12

5. CONCESSIONS AND VALUE GAP FUNDING (VGF) ........................... 14

6. STATUS OF IMPLEMENTATION Of UDAN ........................................... 16

7. CONCLUSION .......................................................................................... 17

BIBLIOGRAPHY .............................................................................................. 19
1. INTRODUCTION

Among the numerous letters in order soups instituted by this administration, UDAN emerges
for astute word-play. Udaan implies flight in Hindi and UDAN extended is UdeDesh Ka
AamNaagrik — that is, let the common man of the nation fly. The common aeronautics serve
summed up the plan's vision a year ago as "getting each hawai chappal wearing Indian to load
up a hawaijahaz (plane)".1UDAN is a local availability collaborate that tries to help air
associations in India. This it looks to do by connecting up many unserved and underserved air
terminals in Tier 2 and Tier 3 urban areas with real urban communities and with each other.
The business as usual — finance air tickets making it moderate for travelers in little focuses
to fly, and offer reasonability hole subsidizing (appropriations) and different motivators
making it possible for carriers to offer sponsored tickets. In this way, for example, a large
portion of the tickets on one-hour flights under UDAN will have a passage top of Rs. 2,500
and the remaining can be sold at showcase rates. The Central and State governments will
sponsor aircrafts flying the UDAN courses, with the previous giving the piece; a cess on
flights on significant courses will support a piece of the endowment. In addition, there will be
concessions on fuel charges, air terminal charges, and so forth. Aircrafts will likewise get
three-year eliteness on courses assigned in barters. The airfares and the practicality hole
subsidizing under UDAN will be re-examined on a quarterly premise, in view of swelling and
different variables. The first round of closeouts held recently observed 128 courses being
granted to five administrators — Alliance Air, Air Deccan, Air Odisha, Trujet and SpiceJet.
The following round of sell-offs is normal inside three months. With enormous players, for
example, Alliance Air, SpiceJet and IndiGo tossing their caps into the ring, UDAN is by all
accounts on a promising flightpath. It stays to be seen however whether activity development
on the local courses meets the plan's desires.

It is aimed at making air travel affordable and widespread,


enabling inclusive job growth and infrastructure development of all regions and states of
India. It has two components, the development and operationalisation of 100 regional airports

1
ANAND KALYANARAMAN,All you wanted to know about UDAN, TheHinduBusinessline, (Aug. 25, 2017,
10:04 A.M.), http://www.thehindubusinessline.com/opinion/columns/all-you-wanted-to-know-about-
udan/article9699868.ece
with regular scheduled flights by 2018-2019, for which initial funding of INR4500 crore for
the redevelopment of 50 airports was approved in May 2017,2 and the new regional flight
routes component, which will cap and subsidise the airfares, to connect hundreds of new
subsidised commercially viable routes among more than 100 underserved and unserved
airports in smaller towns with each other and with well served airports in bigger well
connected cities as well.

1.1. OBJECTIVE OF STUDY

The objective of the researcher’s study on this topic is to dissect and give a holistic analysis
of the various aspects of the Indian Government structure. This project analyses various
provisions related to the same.

1.2. RESEARCH METHODOLOGY

The nature of research methodology adopted by the researcher for this particular topic is
purely doctrinal. The researcher has used resources available at the library of CNLU and the
World Wide Web. Thus, the researcher of this project has used secondary data for the
successful completion of this project. No primary data has been included.

1.3. FORMATTING METHODOLOGY

The project is in Times New Roman, font Size 14 for the main headings and 12 for other
parts of the study with 1.5 spacing. The footnotes are of font size 10 with 1.0 spacing.
Uniform method of footnoting has been followed.

1.4. LIMITATION OF THE STUDY

Due to paucity of time and lack of resources, a complete comparative study with scheme
prevalent in other nations could not be be undertaken by the researcher. However exhaustive
use the internet and library resources for the successful completion of this project

1.5. HYPOTHESIS

 India became a Sovereign


 Democratic Republic with the commencement of Constitution of India

2
http://www.livemint.com/Politics/YSfasaLtkiDW0hBQylqNnN
2. SOVEREIGNTY

A State and the doctrine of sovereignty are inseparable parts of the same machine. In the
simplest terms, the doctrine of sovereignty refers to the quality of enjoying a superseding
authority over a geographical area or a populace. Sovereignty means the supreme power of
the state over all individuals and associations within its own territorial limits. This is internal
sovereignty of the state whereby the state is the final authority to make laws, issue commands
and take political decisions which are binding upon all individuals and associations within its
jurisdiction. It has the power to command obedience to its laws and commands and to punish
the offenders who violate the same. At the same time, sovereignty also involves the idea of
freedom from foreign control, i.e., the independence of the state from the control or
interference of any other state in the conduct of its international relations. This is what is
called external sovereignty whereby a state has the power to independently determine its own
foreign policy and has the right to declare war and make peace. At the same time, external
sovereignty implies that each state, big or small, by virtue of its sovereign status is equal to
every other state. It can command no other state and it cannot itself be commanded by any
other state.

Sovereignty is an essential element of the state and with every change in the conception of
the state, the concept of sovereignty has also varied from age to age. The Greek philosopher
Aristotle spoke of the “supreme power” of the state. The Roman jurists were also familiar
with the notion. During the Middle Ages, the idea of sovereignty was associated either with
the authority of the king or with the Pope.

Characteristics of Sovereignty

There are many characteristics or attributes of sovereignty. These are discussed below:

 Absoluteness: Sovereignty is regarded as absolute. This means that neither within the
state nor outside it , is there any power which is superior to the sovereign. The will of
the sovereign reigns supreme in the state. His obedience to customs of the state or
international law is based on his own free will.

 Permanence: The sovereignty of a state is permanent. Sovereignty lasts as long as an


independent state lasts. The death of a king or president or the overthrow of the
government does not mean the destruction of sovereignty as the ruler exercises
sovereign power on behalf of the state and therefore, sovereignty lasts as long as the
state lasts.

 Universality: Sovereignty is a universal, all-pervasive or all-comprehensive quality in


the sense that it extends to all individuals, groups, areas and things within the state.
No person or body of persons can claim exemption from it as matter of right. The
immunity granted to diplomats from other countries is only a matter of international
courtesy and not of compulsion.

 Inalienability: Sovereignty is inalienable. It means that the state cannot part with its
sovereignty. The state as a sovereign institution ceases to exist, if it transfers its
sovereignty to any other state.

 Indivisibility: As sovereignty is an absolute power, it cannot be divided between


different sets of individuals or groups. In every state, sovereignty must be vested in a
single legally competent body, to issue the final commands. Division of sovereignty is
bound to give rise to conflicting and ambiguous commands.

 Imprescriptibility: This implies that sovereignty can neither be destroyed nor lost if it
has not been exercised for a long period. A people may not have exercised
sovereignty for some time due to control by a foreign power. But non-exercise of
sovereign power does not put an end to sovereignty itself. It can only shift to a new
bearer.[ii]

 Originality: The most important characteristic of sovereignty is its original character.


Sovereignty cannot be manufactured. Dependence on another for supreme power
cannot make a state a sovereign one.

Who, is the real sovereign in India in terms of law making power is ambiguous to say the
least. Who is the authority in India that can convoke a new Constituent Assembly without the
prospect of judicial review and possible judicial veto? If the Indian Parliament under the
present Constitution should call it, it can do so only by enacting a law. That law is, however,
subject to judicial review and is bound to be vetoed by the court since its object is to over-
ride the judgment of the court. If, then, the Indian Parliament under the present Constitution
cannot call a new Constituent Assembly, who can? It has been said that the constituent power
vests in the sovereign people of India and they can convoke a new Constituent Assembly,
even as it was claimed that they convoked the first Constituent Assembly in 1946. But was it
true?

The Preamble of the current Constitution of India said that the People of India had resolved to
constitute India into a Sovereign Republic and had enacted the Constitution in the Constituent
Assembly. Was this claim based on constitutional facts or on political rhetoric? The Indian
Constituent Assembly met for the first time on December 9, 1946. It was not called into being
by the people of India by virtue of their sovereign authority but by the British Governor
General in accordance with, and subject to, the statement of the British Cabinet Mission. The
Assembly had no more constitutional or sovereign status than, say, the Indian Round Table
Conference called by the British Government in 1930-’32. In moving the Resolution on
“Alms and objects” on December 13, 1946, Pandit Jawaharlal Nehru, then Prime Minister of
India, said: “You all know that this Constituent Assembly is not what many of us wished it to
be. It had come into being under peculiar conditions, and the British Government had a hand
in its birth. They have attached to it certain conditions. We accepted the State Paper, which
may be called the foundation of this Assembly.”

Mr. N. Gopalaswami Aiyangar sought to claim “sovereignty” to the Assembly in “residuary”


matters which were not covered by the limitations imposed by the Cabinet Mission. But, Sir
Alladl Krishnaswami Iyer was not impressed by the argument. He said on December 19,
1946, that, though the Cabinet Mission Statement was not statutory, it was not open to the
Constituent Assembly to deviate from its main principles. Prime Minister Nehru clinched the
matter finally on April 28, 1947, when he admitted that the Constituent Assembly had
accepted the Cabinet Mission Statement of May 16, 1946 and was functioning in accordance
with it, and there the matter ended. He added:“We rather doubted the authority of the
Constituent Assembly to deal with all manner of matters, that is to say, the Constituent
Assembly, as it is constituted at present.”

The Constituent Assembly was not free even to give its own interpretation to the Cabinet
Mission Statement regarding “grouping.” Nehru did not claim that the Assembly was
“sovereign.” Though it was not limited by an Act of the British Parliament, it was limited by
British Cabinet Mission Plan.

The Indian Independence Act was passed by the British Parliament and received the Royal
Assent on July 18, 1947. Dr. K. M. Mushi claimed on July 14, 1947, that the limitations
imposed on the Constituent Assembly by the Cabinet Mission had been removed. But
simultaneously the Constituent Assembly became a statutory body, governed by the Indian
Independence Act of the British Parliament. If, before the Act, the Assembly was based upon,
and limited by, the Cabinet Mission, after the Act it was based upon, and limited by, the Act.
Both of them were made by “sovereign” Britain and not by India.

On July 25, 1947, Mr. Sri Prakasa questioned the constitutional propriety of the whole affair.
Pandit Nehru admitted the charge and secured the appointment of a committee of very
eminent constitutional lawyers to evolve a method to validate the impropriety and sustain the
claim to sovereignty of the Assembly, as suggested by Mr. Sri Prakasa. But the Committee
never reported, since the British Parliament, by a clause in the Indian Independence Act,
validated all the actions of the British Governor-General retrospectively.

If the Indian Constituent Assembly had been convoked by the people of India by virtue of
their sovereignty, the British Government would have had no constitutional part in its
convocation composition and functions even as it had no part in the convocation, composition
and functions of Constituent Assemblies in, say, America or France.

The Indian Independence Act conferred Dominion Status on India and not “sovereignty”, if
only because no sovereign state, by an Act of its legislature, can confer sovereignty on
another state, since it is constitutionally competent to repeal its own enactments. The
sovereign State can, by a policy of political self-restraint, refrain from interfering with the
policies of the constitutionally subordinate and non-sovereign State, as even Britain does not
interfere with the doings of the Dominions. The latter have political autonomy, but not
constitutional sovereignty, on a par with Britain. Similarly, India has political autonomy as
the other Dominions and Britain, but has not constitutional sovereignty as Britain.

It may be recalled that, when Mr. Gopala Krishna Gokhale was once challenged if there was
any instance of a subject country attaining freedom by constitutional action, he had said that
the last chapter of constitutional developments had not yet been written, and that it might be
given to India to write a new chapter by attaining her political freedom by constitutional
means. His hope has been realised. India won her freedom constitutionally by an Act of the
British Parliament, and not after snapping her constitutional relation with Britain as America
had done.In the whole Commonwealth Britain alone is constitutionally sovereign, while all
its members, including Britain and India, have equal political autonomy. There is thus no
sovereign authority in India which can constitutionally convoke a new Constituent Assembly
to make a new Constitution.

Mr. Nehru decided that India should stay in the Commonwealth as an equal member with the
others. He went further and acknowledged the British Sovereign as the Head of the
Commonwealth, which meant that the President of India as the Head of the member State has
a status lower than that of the British Sovereign, the Head of the Commonwealth. He even
invited Lord Mountbatten to be the first constitutional Governor-General of India. These
developments were more mature signs of international co-operation within the smaller and
more effective association than the United Nations, in spite of conflicts which are not
unknown to closer families. Mrs. Indira Gandhi, the present Prime Minister of India, has done
wisely in rejecting the pressure to quit the Commonwealth and in adhering to it as her father
had done.
3. DEMOCRACY
4. Why UDAN?

In order to connect the country’s under-served and unserved airports under the Centre’s
Regional Connectivity Scheme (RCS), five airlines, including SpiceJet and an Air India
subsidiary, have won bids to operate on 128 routes. The routes will connect 70 airports,
including 31 unserved and 12 under-served ones under the scheme — also known as UDAN
(UdeDesh ka AamNaagrik). On each flight, 50 per cent of the seats are capped at Rs 2,500
per seat for one-hour travel. Air Odisha Aviation got maximum number of 50 routes followed
by Air Deccan (34) and Turbo Megha Airways (18). The AI subsidiary Airline Allied
Services would operate on 15 routes while SpiceJet won bids for 11 routes. Announcing the
names of winning bidders and the routes, Choubey said 128 routes are being awarded to a
total of five operators. The carriers will operate 19-78 seater aircraft. These flights would
connect airports spread across over 20 states and union territories including Punjab, Uttar
Pradesh, Madhya Pradesh, Maharashtra, Andhra Pradesh, Gujarat, Himachal Pradesh,
Karnataka, Tamil Nadu and Puducherry. The airports that would be connected under UDAN
include Bhatinda, Shimla, Bilaspur, Neyveli, Cooch Behar, Nanded and Kadapa. On each
flight, 50 per cent of the seats would have a cap of Rs 2,500 per seat/hour, Choubey said.
Under UDAN, the operators would be extended viability gap funding — for which money is
partly raised through a levy of up to Rs 8,500 on flights operating in major routes like Delhi
and Mumbai. The viability gap funding amount is estimated to be around Rs 205 crore per
annum for the operators chosen in the first round of bidding, Choubey said. When asked how
the amount of Rs 205 crore could translate to in terms of increased price on fliers on the
major routes where the levy is imposed, Choubey said it would be around “Rs 50 per
passenger. “That is the ball park figure which is less than 1 per cent of average ticket price,”
he noted. Further, Choubey said airports coming under this round of UDAN are in “ready to
fly or nearly ready to fly conditions” and the next round of bidding would commence shortly.
Minister of State for Civil Aviation Jayant Sinha said criteria for selecting the winning
bidders was based on the level of viability gap funding each of them sought per seat. The
viability gap funding would be in place for three years for the airlines concerned from the
date of starting operations in a particular UDAN route. The scheme also provides for various
benefits including no airport charges and three-year exclusivity on the routes.SpiceJet’s CMD
Ajay Singh said the airline would not be availing viability gap funding. Amber Dubey,
Partner and Head of Aerospace and Defence at KPMG in India said timely payment of
viability gap funding to the operators would be key to sustainable operations. “AAI must
install fool-proof monitoring mechanism to ensure no undue delays happen,” he said. The
Ministry and regulator DGCA should also allow sharing of licensed crew among the
operators in order to reduce the cost of operators.
5. CONCESSIONS AND VALUE GAP FUNDING (VGF)

The scheme entails making the routes financially viable, without insisting on the financial
viability of the regional airports, by lowering the cost of flight operations and through VGF.
The demand driven revival and enhancement of the regional airports with financially viable
commercial flight routes, without insisting on the financial viability of the airports, is based
on the combination of seeking firm proposals from Airlines for the names of airports they
wish to fly to and MoU-bound commitment from the state governments for providing various
concessions for the airport operations, such as state tax concessions, free land and security,
etc.Participating states and Union Territories are required to sign the MoU with the union
governments to share the 20% and 10% burden of VGF respectively.To make the routes
viable for commercial airlines, the union government offers flexible code sharing
arrangements, reduced excise on value-added tax on fuel and service tax. Airports, some
owned by the Airports Authority of India and others by the respective state governments, will
not charge the landing and parking charges and terminal navigation landing chargesAirlines
will be given a Value Gap Funding (VGF) raised from the RCS levy. Starting from 2017, the
air fare cap and VGF in this 10 year scheme will be revised quarterly, based on Consumer
Price Index for Industrial Workers.The Udan programme operates at three levels to ensure
route profitability: reducing operating costs as much as possible, providing a
marketdiscovered subsidy for half the seats, guaranteeing a three-year exclusivity on routes.3

Operating costs are reduced in the following ways. First, Udan reduces taxes on aviation
turbine fuel (ATF) and eliminates airport charges completely for Udan routes. Second, Udan
improves liquidity in the regional aircraft (typically turbo-props smaller than 40 tons and less
than 80 seats) thereby reducing leasing charges. Finally, the Directorate General of Civil
Aviation (DGCA) is streamlining regulations for regional aircraft so that new airlines can get
started with fewer upfront costs.

Udan uses a market-based approach to establish subsidy levels. Note that subsidy levels are
capped based on operating costs estimated from actual industry data for different type of
aircraft. Only qualified bidders are allowed to enter the bidding process and the route is
awarded to the bidder bidding the lowest subsidy level for half the seats on the flight. These

3
http://www.thehindubusinessline.com/opinion/columns/all-you-wanted-to-know-about-
udan/article9699868.ece
subsidised seats are to be priced on the basis of a varying rate schedule such that a 30-minute
flight is priced at Rs 1,500 and a 60-minute flight is priced Rs 2,500 and so on.The other half
of the seats can be sold at market prices. Finally, the winning bidder gets three-year
exclusivity on the route incentivising them to invest in building up the route. Geographically,
large countries like the US, Canada, Brazil and Australia support regional connectivity
through public funding. Udan is the firstof-its-kind scheme, which will levy a small fee on
the flights on its metro routes to fund regional connectivity.

RCS subsidy will be raised by levying a cess, which will be revised periodically, on the flight
between main trunk routes connecting major cities.4 Starting from 1st June 2017, it is initially
at a flat rate of INR5,000 per flight, translating into roughly INR30 per passenger.

4
http://www.thehindu.com/business/centre-cuts-udan-levy-on-air-tickets/article18439626.ece
6. STATUS OF IMPLEMENTATION Of UDAN

The Government has awarded 128 routes connecting 43 unserved and under-served airports
to 5 selected airlines for commencing operations under Regional Connectivity Scheme (RCS)
- UDAN in the 1st round of bidding. RCS flights from six RCS airports - Shimla, Nanded,
Kandla, Porbandar Gwalior& Bhatinda- have already commenced. The 2nd round of bidding
under RCS-UDAN is likely to commence soon.As per provision in the National Civil
Aviation Policy, revival of the airstrips and airports where scheduled operations are currently
not undertaken, will be demand-driven depending of firm demand from airline operators and
development as No frill airports will be done at an indicative cost within Rs.100 crores.The
Ministry of Civil Aviation launched RCS-UDAN scheme on 21-10-2016 to facilitate /
stimulate regional air connectivity by making it affordable. Promoting affordability of
Regional air connectivity is envisioned under RCS by supporting airline operators through (i)
concessions by Central Government, State Governments and airport operators to reduce the
cost of airline operations on regional routes and (ii) financial support (Viability Gap Funding
or VGF).Central Government, State Governments and airport operators will be inter-alia
providing following concessions under RCS:5

Central Government :

i) Excise Duty at the rate of 2% on Aviation Turbine Fuel (ATF) for Selected Airline
Operators at RCS Airports for RCS Flights for a period of three years from the date of
notification of this Scheme.

ii) Freedom to enter into code sharing arrangements with domestic as well as international
airlines pursuant to applicable regulations and prevailing air service agreements.

State Governments at RCS Airports within their States:

i) Reduction of VAT to 1% or less on ATF at RCS Airports located within the State for a
period of ten years from the date of notification of this Scheme.

ii) Provision of security and fire services free of cost at RCS Airports

5
http://pib.nic.in/newsite/mbErel.aspx?relid=169146
Airport Operators:

i) Airport operators shall not levy Landing Charges and Parking Charges

ii) Selected Airline Operators shall be allowed to undertake ground handling for their RCS
Flights at all airports.

iii) Airports Authority of India (AAI) shall not levy any Terminal Navigation Landing
Charges (TNLC) on RCS Flights.

iv) Route Navigation and Facilitation Charges (RNFC) will be levied by AAI on a discounted
basis @ 42.50% of Normal Rates on RCS Flights.

In addition to the above, Central Government and State Governments will provide VGF. It
will be shared between Ministry of Civil Aviation and the State Government in the ration of
80:20 whereas for the states in North-Eastern region / Union Teritories (UT's) the ratio will
be 90:10.

7. CONCLUSION
Air connectivity has a multiplier effect on tourism, investments, economic growth, job
creation…the works. Getting the nooks and corners of India linked up, directly or indirectly,
through the fastest mode of transportation can open up the country like never before. Cheap
fares on regional routes can mean a horde of first-time fliers taking to the skies, making
accessible to them new economic opportunities and quick connections in times of
emergencies. India is already among the fastest growing aviation markets in the world. But
infrastructure constraints at airports in big cities could slow down this growth. UDAN, if
successful, can provide a fillip to India’s aviation story. It could boost passenger numbers and
provide feeder traffic to networks in big centres.ravel broadens the mind, and UDAN can
open a whole new world quite cheaply. By improving mobility, it can give you new vistas for
employment and business. Those who hail from the hinterland can now hope to reach home
much faster. On the flipside, with the Centre deciding to charge Peter to fly Paul, you will
have to pay a bit more on travel between the major cities.Udan will jump start regional air
connectivity and strengthen the overall aviation network at a modest market-discovered price.
Passengers will benefit from enhanced air services, airlines will see more traffic on their
metro routes and India will gain through faster economic growth and national integration.
ThusUdan will surely be a meaningful contributor to India’s overall transformation and will
jump start regional air connectivity and strengthen the overall aviation network at a modest
market-discovered price. Passengers will benefit from enhanced air services, airlines will see
more traffic on their metro routes and India will gain through faster economic growth and
national integration. ThusUdan will surely be a meaningful contributor to India’s overall
transformation.
BIBLIOGRAPHY

 http://www.indiatoday.intoday.in

 http://www.thehindu.com

 http://www.livemint.com

 http://www.business-standard.com

 http://www.indianexpress.com

 http://www.hindustantimes.com

 http://pib.nic.in

 http://www.aai.aero

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