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Modified UDAN Scheme

July 5, 2026

The Prime Minister of India has recently inaugurated the new terminal building at Jodhpur airport and launched the modified UDAN Scheme.

About Modified UDAN Scheme:

  • The scheme aims to accelerate the next phase of aviation-led development.
  • A key emphasis is on the development of 100 aerodromes from existing unserved airstrips to expand aviation infrastructure across the country.
  • The scheme has been earmarked for Operations and Maintenance (O&M) support to ensure the viability of regional airports during their initial years of operation.
  • Additionally, an investment will fund the creation of modern helipads, and a continued Viability Gap Funding for airlines to sustain regional airline operations.
  • The scheme promotes the induction of indigenous aircraft and helicopters, including HAL Dhruv and Dornier platforms, for operations in underserved and remote regions.

About UDAN Scheme:

  • The Ude Desh ka Aam Nagrik (UDAN) scheme is a Regional Connectivity Scheme (RCS) launched in October 2016 by the Government of India to enhance air connectivity to underserved and unserved regions.
  • Objectives:
    • Improve regional connectivity across Tier-2 and Tier-3 cities.
    • Make air travel affordable for common citizens.
    • Promote balanced regional development.
    • Enhance the infrastructure utilisation of unused and underutilised airports.
  • The mission has two parts.
    • First, make air travel affordable on short regional sectors where train journeys take 10-18 hours.
    • Second, revive unserved and underserved airports — places that had runways but no scheduled commercial flights.
  • The first UDAN flight took off on 27 April 2017, connecting Shimla to Delhi.
  • Key Features:
    • Airlines are selected through a competitive bidding mechanism.
    • Viability Gap Funding (VGF) is provided to airlines to operate on less profitable routes.
    • The Airports Authority of India has also waived off the airport fee for the same.
    • At the same time, the state governments are also providing security, electricity, and fire-fighting facilities free of cost.
    • 50% of seats are offered at a capped fare of around Rs. 2,500 per hour of flight.
    • Focus on connecting remote, hilly, and island regions.
  • Funding Mechanism:
    • Initially funded through a Regional Connectivity Scheme levy imposed on flights operating on major routes.
    • The levy subsidised airlines operating on regional routes.
  • The Ministry of Civil Aviation runs it through the Airports Authority of India (AAI), which acts as the implementing agency for bidding, monitoring, and viability gap funding payouts to airlines.
  • Phase-by-phase Summary:
    • UDAN 1.0 (2017): 128 routes awarded; first commercial flight Delhi–Shimla.
    • UDAN 2.0 (2018): added priority areas including the North-East, hill states, islands; helicopter routes introduced.
    • UDAN 3.0 (2018-19): tourism-focused routes, seaplane operations, and select international connectivity.
    • UDAN 4.0 (2020): further expansion to remote areas and water aerodromes, longer stage length allowed.
    • UDAN 5.0 onwards: stage length raised to enable longer regional links; relaxation of viability period rules; helicopter and small-aircraft sub-schemes (Sagarmala Seaplane, Krishi UDAN, etc.)

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