The Future of Regional Air Connectivity: Revamped UDAN Scheme Explained

Revamped UDAN Scheme: A New Chapter in Regional Air Connectivity

The Government of India has unveiled an ambitious plan for the UDAN (Ude Desh Ka Aam Nagrik) scheme, proposing an outlay of Rs. 30,000 crore. This revamped version aims to extend the scheme beyond April 2027 and significantly enhance air connectivity to underserved and remote regions.

Understanding the Modified UDAN Scheme

The refreshed UDAN framework is designed to bolster regional aviation infrastructure, make air travel more affordable, and support airlines operating in challenging terrains. The proposed funds are allocated as follows:

• Rs. 18,000 crore for developing new airports, including greenfield sites, refurbishing existing airstrips, and constructing heliports in hilly areas.
• Rs. 12,000 crore for Viability Gap Funding (VGF), incentivizing airlines to fly on regional routes despite low initial demand.

This initiative will particularly focus on:

• Hilly and remote regions
• Aspirational districts
• North-Eastern states
• Small towns with limited or no air connectivity

The Journey of UDAN

Launched in October 2016 under the National Civil Aviation Policy, the UDAN scheme aimed to democratize air travel, making it accessible to the common citizen. Prime Minister Narendra Modi inaugurated the first flight from Shimla to Delhi in April 2017. Initially supported with Rs. 8,000 crore, the scheme has operationalized 649 out of 915 valid routes, connecting 92 unserved and underserved airports, including 15 heliports and 2 water aerodromes. Over 1.56 crore passengers have benefited from 3.23 lakh UDAN flights.

Despite these achievements, several airports remain non-operational due to land, technical, or regulatory challenges, necessitating a renewed approach.

Goals of the Modified UDAN Framework

Expanding Destinations and Passenger Base

The revamped scheme aims to add 120 new destinations over the next decade, significantly extending the national aviation map. The government plans to facilitate four crore additional passengers in regional flights, boosting domestic aviation.

Supporting Infrastructure and Private Participation

The scheme will support small airports, helipads in hilly areas, and water aerodromes, ensuring comprehensive coverage across varied geographies. The new guidelines aim to attract more private players by simplifying aircraft leasing, operator permits, and route bidding processes.

Addressing Challenges in UDAN’s Implementation

Several obstacles have hindered UDAN's full-scale implementation, such as:

• Land availability issues and state government clearance delays
• Operational constraints at small airports lacking navigational or terminal facilities
• Shortage of suitable aircraft, especially 20-70 seater turboprops
• Maintenance and leasing issues for regional carriers
• Low passenger demand in remote locations, necessitating long-term subsidy support

The revised UDAN scheme addresses these gaps with a flexible funding model and improved coordination between the Centre, states, airport operators, and airlines.

Incentives and Expected Benefits

Airport operators and state governments will offer reduced fuel taxes, lower airport charges, priority parking bays, and faster regulatory clearances. New airports will receive dedicated capital support to expedite construction, making them ready for UDAN operations. This financial support aims to ensure commercial viability and sustainability for regional carriers.

Enhanced regional connectivity will boost mobility, promote tourism, integrate local economies, generate employment, and improve emergency and medical access. Special attention to the North-East, Himalayan states, and Aspirational districts will help reduce regional disparities, fostering economic growth and development.