UDAN Scheme (Ude Desh ka Aam Nagrik)

INFRASTRUCTURE

23 JULY 2026

• UDAN Scheme (Ude Desh ka Aam Nagrik) is the Government of India’s Regional Connectivity Scheme (RCS) launched to make air travel affordable and accessible by connecting unserved and underserved airports in Tier-II and Tier-III cities with major cities.
• It was launched by the Ministry of Civil Aviation in October 2016, with the first flights commencing in April 2017.

Objectives

• Provide affordable air travel to the common citizen.
• Improve connectivity to Tier-II and Tier-III cities.
• Revive unserved and underserved airports.
• Promote tourism, trade, investment, and regional development.
• Enhance connectivity in remote, hilly, island, and North-Eastern regions.

Key Features

• Viability Gap Funding (VGF): Financial support to airlines to operate commercially unviable regional routes.

Viability Gap Funding (VGF) is a flagship financial grant provided by the Government of India to support economically desirable but commercially unviable Public-Private Partnership (PPP) infrastructure projects. It bridges the financial deficit to attract private investment in sectors like healthcare, renewable energy, and transportation

• Fare Cap: Airfare for a one-hour flight on an RCS route is capped (subject to periodic revision by the government).
• Airlines receive concessions such as:
  • Reduced airport charges
  • Lower excise duty on Aviation Turbine Fuel (ATF)
  • Support from State Governments (security, fire services, land, etc.).
• Selection of airlines is through a competitive bidding process.

Achievements (Original UDAN)

• 679 routes operationalised.
• 95 airports, heliports, and water aerodromes connected.
• Over 3.58 lakh flights operated.
• More than 1.68 crore passengers served.
• Operational airports in India increased from 74 (2014) to 165 (July 2026).

Modified UDAN (2026)

• The Union Cabinet approved Modified UDAN on 25 March 2026 for implementation from FY 2026–27 to FY 2035–36.
• It seeks to deepen regional connectivity and strengthen the aviation ecosystem.
• Total Outlay: ₹28,840 crore
• Scheme Duration: 10 years (2026–27 to 2035–36)
• 100 new airports to be developed from existing unserved airstrips.
• 200 modern helipads for hilly, remote, island, and aspirational districts.
• O&M support for around 441 aerodromes.
• ₹10,043 crore allocated as Viability Gap Funding over 10 years.
• Greater support for regional airlines and last-mile connectivity.
• Promotes indigenous aviation through HAL Dhruv helicopters and HAL Dornier aircraft under Atmanirbhar Bharat.