{"id":87110,"date":"2026-10-21T18:20:21","date_gmt":"2026-10-21T12:50:21","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=87110"},"modified":"2026-10-21T18:21:18","modified_gmt":"2026-10-21T12:51:18","slug":"10-years-udan-scheme","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/21-10-2026\/10-years-udan-scheme","title":{"rendered":"10 Years of UDAN Scheme"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy&nbsp;<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>In News<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <strong>UDAN Scheme completed ten years <\/strong>and considerably expanded the regional aviation network of India by<strong> linking unserved and underserved areas.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>UDAN Scheme<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Prime Minister of India launched the <strong>Regional Connectivity Scheme (RCS) \u2013 UDAN (\u201cUde Desh ka Aam Nagrik\u201d) in 2016.<\/strong><\/li>\n\n\n\n<li>It was conceptualised under the <strong>National Civil Aviation Policy (NCAP) 2016 <\/strong>with a 10 year vision to connect<strong> Tier-2 and Tier-3 cities <\/strong>through a market driven and financially supported approach.\u00a0<\/li>\n\n\n\n<li>It entered its operational stage with the inauguration of the first RCS-UDAN flight from <strong>Shimla to Delhi in April 2017.\u00a0<\/strong><\/li>\n\n\n\n<li>It incentivised the <strong>airlines with concessions and Viability Gap Funding (VGF)<\/strong> to fly on the rural routes with cheap rates and enhanced accessibility.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"b7d2e0\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"604\" height=\"487\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/10\/image-129.png\" alt=\"UDAN Scheme\" class=\"not-transparent wp-image-87111\" style=\"--dominant-color: #b7d2e0; aspect-ratio:1.240293910030161;width:477px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/10\/image-129.png 604w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/10\/image-129-300x242.png 300w\" sizes=\"auto, (max-width: 604px) 100vw, 604px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Progress<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Lines Operationalised:<\/strong> The plan has operationalised 687 regional lines in India.<\/li>\n\n\n\n<li><strong>Aerodromes Operationalised<\/strong>: Total 95 aerodromes including 17 heliports and 02 water aerodromes have been operationalised.<\/li>\n\n\n\n<li><strong>Flights Operated<\/strong>: Under the plan more than 3.68 lakh flights have been operated.<\/li>\n\n\n\n<li><strong>Passengers Carried <\/strong>: The initiative has enabled 1.72 crore passengers to fly.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Latest Developments<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Union Cabinet has approved the launch and implementation of the <strong>Regional Connectivity Scheme \u2013 Modified UDAN for a period of ten years from FY 2026-27 to FY 2035-36 <\/strong>with a total outlay of Rs.28,840 crore .<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Components of the Modified UDAN&nbsp; scheme&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Development of 100 airports from existing unserved airstrips over a period of eight years with an outlay of \u20b912,159 crore<\/li>\n\n\n\n<li>Construction of 200 modern helipads in remote, hilly, island and aspirational areas with an estimated cost of \u20b93,661 crore<\/li>\n\n\n\n<li>Allocation of \u20b910,043 crore over ten years as Viability Gap Funding (VGF) to the airlines for operating regional routes.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Significance<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Inclusive growth:<\/strong> Tier 2 and 3 cities are now integrated into the national market.\n<ul class=\"wp-block-list\">\n<li>For ex: Vijayawada to Kadapa, earlier 8 to 10 hours by road, is now a short flight.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Infrastructure expansion:<\/strong> Operational airports rose from 74 in 2014 to 165 by July 2026.\u00a0<\/li>\n\n\n\n<li><strong>Strategic and regional balance: <\/strong>Connectivity to the North East, hills and islands strengthens border area integration.\u00a0<\/li>\n\n\n\n<li><strong>Economic multiplier: <\/strong>Regional airports support tourism, MSMEs and perishable exports.<\/li>\n\n\n\n<li><strong>Industry demand:<\/strong> The scheme created demand for ATR and smaller aircraft, MRO services and pilot training, which supports aviation sector jobs.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges and Concerns<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Route sustainability<\/strong>: Many routes collapse once VGF ends after three years. Airlines have little incentive to continue where load factors are low and demand has not matured.<\/li>\n\n\n\n<li><strong>Dormant airports:<\/strong> Several airports were built or revived without demand assessment. Parliamentary and audit reports have flagged underused infrastructure and poor last mile connectivity to terminals.<\/li>\n\n\n\n<li><strong>Fiscal burden<\/strong>: Dependence on subsidy raises questions about long term viability and fiscal prudence.<\/li>\n\n\n\n<li><strong>Airline fragility<\/strong>: Small regional carriers face high ATF costs, VAT on fuel varying across states, leasing costs and aircraft shortages. Several operators have exited the market.<\/li>\n\n\n\n<li><strong>Operational and safety issues: <\/strong>Hilly terrain, short runways, weather and thin MRO support increase risk and cancellations.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Forward<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Demand led planning:<\/strong> Assess catchment potential before awarding routes, and link airports with rail, road and local transport.<\/li>\n\n\n\n<li><strong>Rationalise taxes: <\/strong>Bring ATF under GST or harmonise state VAT to lower operating costs.<\/li>\n\n\n\n<li><strong>Support airlines:<\/strong> Encourage aircraft leasing, MRO hubs in India and pilot training to reduce structural costs.<\/li>\n\n\n\n<li><strong>Phase out VGF gradually: <\/strong>Shift from subsidy to market viability through bundled routes, cross-subsidy, and bundling with commercial routes.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=2325359&amp;reg=48&amp;lang=1\" target=\"_blank\" rel=\"noopener\"><strong>PIB<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> In News <\/strong><\/p>\n<li class=\"ms-5\"> The UDAN Scheme completed ten years and considerably expanded the regional aviation network of India by linking unserved and underserved areas. <\/li>\n<p><\/p>\n<p><strong> UDAN Scheme <\/strong><\/p>\n<li class=\"ms-5\"> The Prime Minister of India launched the Regional Connectivity Scheme (RCS) \u2013 UDAN (\u201cUde Desh ka Aam Nagrik\u201d) in 2016. <\/li>\n<li class=\"ms-5\"> It was conceptualised under the National Civil Aviation Policy (NCAP) 2016 with a 10 year vision to connect Tier-2 and Tier-3 cities through a market driven and financially supported approach.\u00a0 <\/li>\n<p><a href=\" https:\/\/www.nextias.com\/ca\/current-affairs\/21-10-2026\/10-years-udan-scheme \" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-87110","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/87110","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=87110"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/87110\/revisions"}],"predecessor-version":[{"id":87114,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/87110\/revisions\/87114"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=87110"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=87110"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=87110"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}