Modified UDAN: Strengthening India’s Regional Aviation Network

Syllabus: GS3/Infrastructure

Context

• Recently, the Union Cabinet approved the Modified UDAN Scheme with a ₹28,840 crore outlay (FY 2026–27 to FY 2035–36).

About Ude Desh ka Aam Nagrik (UDAN)

• The Regional Connectivity Scheme (RCS) – UDAN (Ude Desh ka Aam Nagrik) was launched in 2016 by the Ministry of Civil Aviation to make air travel affordable, accessible and widespread, especially in unserved and underserved regions.
• Key Features:
  • Capping fares on certain regional routes.
  • Viability Gap Funding (VGF) for airlines.
  • Revival of unused airports, heliports and water aerodromes.
  • Financial and operational support from the Centre and States.
  • Funding through the Regional Connectivity Scheme (RCS) Levy, a sector-funded mechanism unique to India.

Achievements of UDAN (2016-2026)

• India emerged as the third largest domestic aviation market in the world.
• Operational airports grew from 74 (2014) to 165 (July 2026) & 679 UDAN routes are operational.
• Over 3.58 lakh flights were operated and 1.68 crore passengers more were benefited.
• Better connectivity in remote places like Tezpur, Passighat, Pithoragarh, Diu, Rourkela.
• Passenger-centric initiatives like UDAN Yatri Cafés, Flybrary and free Wi-Fi have enhanced the experience at airports.

Why was Modified UDAN Needed?

• There were several challenges:
  • Many of the regional airports continued to make losses.
  • High operating and maintenance costs.
  • Aircraft availability is limited for short regional routes.
  • Inadequate airport infrastructure in remote areas
  • Weak connectivity in hilly, island and border areas.
  • Need for greater private sector involvement and for long-term sustainability.

Modified UDAN Scheme (2026)

• It is the next phase of India’s regional aviation policy for next 10 years (FY 2026-27 to FY 2035-36)
• Focus Areas: Expansion of Infrastructure; Sustainable Operations at Airports; Viability of Airlines; Improved Helicopter Connectivity; Indigenous Capacity Building for Aviation; Inclusive Development of the Region.

Major Components

• Development of Aerodromes: 100 new airports, 441 aerodromes and 200 modern helipads to be developed from existing unserved airstrips.
  • It is designed to build regional aviation infrastructure, link small towns to the national aviation network and facilitate the movement of passengers and cargo.
• Operation & Maintenance (O&M) Support: Funds to help maintain operations at smaller airports.
  • Up to Rs 3.06 crore/year per airport;
  • Up to ₹0.90 crore per year for each heliport/water aerodrome
• Viability Gap Funding (VGF) for Airlines: Financial support for a period of up to 5 years; taper funding from the third year, and route exclusivity limited to 3 years.
  • Its aim is to encourage airlines to serve regional routes until they are commercially viable.
• Atmanirbhar Bharat & Indigenous Aviation: The scheme proposes to provide 2 HAL Dhruv helicopters to Pawan Hans and 2 HAL Dornier aircraft to Alliance Air for the promotion of indigenous aircraft manufacturing.
  • It enhances indigenous aviation capability, reduces dependence on imports and supports operations in tough terrain.

Source: PIB