Recently, the Prime Minister launched the next phase of UDAN, known as Viksit UDAN, in Rajasthan to expand regional air connectivity, develop world-class aviation infrastructure and support aviation-led growth in line with Viksit Bharat 2047.
- The Modified UDAN Scheme was earlier approved by the Union Cabinet in March 2026 as the framework for this next phase.
The sky, long seen as a symbol of aspiration, was once an unattainable dream for many in India. To bridge this gap, the Government of India, under the leadership of Prime Minister Shri Narendra Modi, launched the Regional Connectivity Scheme (RCS) – UDAN (“Ude Desh ka Aam Nagrik”) on October 21, 2016. Rooted in the Prime Minister’s vision that even a common man in slippers should be able to afford air travel, UDAN aims to democratize aviation by making flying accessible and affordable for all. Implemented by the Ministry of Civil Aviation, this flagship scheme has since transformed India’s regional connectivity landscape.
The dream of affordable air travel for the common citizen began to take tangible form with the first UDAN flight. This landmark flight took off on April 27, 2017, connecting the serene hills of Shimla to the bustling metropolis of Delhi.
The UDAN scheme 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 yet financially supported model. The scheme incentivised airlines through concessions and Viability Gap Funding (VGF) to operate on regional routes, ensuring affordable fares and improved accessibility.
Cabinet approves Regional Connectivity Scheme – Modified UDAN with a total outlay of Rs.28,840 crore
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the launch and implementation of the Regional Connectivity Scheme – Modified UDAN for a period of ten years from FY 2026-27 to FY 2035-36 with a total outlay of Rs.28,840 crore with the budgetary support of the Government of India.
What are the Key Features of Viksit UDAN?
- Viksit UDAN is the modified phase of the Regional Connectivity Scheme–UDAN, originally launched in October 2016 to make air travel affordable, accessible and inclusive for the common citizen.
- Scheme Period: The scheme will be implemented for 10 years, from Financial Year 2026–27 to Financial Year 2035–36, with total budgetary support of ₹28,840 crore.
- Objective: It aims to strengthen last-mile air connectivity in Tier-2 and Tier-3 cities, remote regions, hilly areas, islands and aspirational districts, ensuring that aviation benefits reach beyond major metropolitan centres.
- Development of Airports: Under Modified UDAN, 100 airports will be developed from existing unserved airstrips, with an investment of ₹12,159 crore over eight years to expand regional aviation infrastructure.
- Operation and Maintenance Support: The scheme provides Operation and Maintenance support of ₹2,577 crore for around 441 aerodromes. Support will be provided for three years, capped at ₹3.06 crore per year per airport and ₹0.90 crore per year per heliport or water aerodrome.
- Modern Helipads: It proposes the development of 200 modern helipads in hilly, remote, island and aspirational regions, with an estimated outlay of ₹3,661 crore, to improve access to healthcare, emergency response and public services.
- Viability Gap Funding: Around ₹10,043 crore has been proposed as Viability Gap Funding for airline operators over 10 years. Airlines will receive support for five years, with tapered funding from the third year onward, while route exclusivity will be limited to three years.
- Implementation: UDAN airports will be developed under Challenge Mode to ensure timely completion, quality, innovation and sustainability. The scheme also promotes indigenous aviation capacity through the proposed procurement of Hindustan Aeronautics Limited Dhruv helicopters and Hindustan Aeronautics Limited Dornier aircraft for regional operations.
About UDAN Scheme
- UDAN is a flagship scheme of the Ministry of Civil Aviation aimed at democratising aviation and enhancing regional connectivity, ensuring access to air travel even in remote areas.
- Launched under the National Civil Aviation Policy (NCAP) 2016, it focuses on connecting Tier-2 and Tier-3 cities through a market-driven yet financially supported model, with the Airports Authority of India (AAI) as the nodal implementing agency.
- Massive Infrastructure Expansion: India’s overall airport network has more than doubled, growing from 74 airports in 2014 to 159 airports in 2024.
- Strategic Evolution (UDAN 1.0 to 5.0): The initiative systematically expanded its scope from connecting underserved airports to including helipads in UDAN 2.0, introducing tourism routes in UDAN 3.0, focusing on hilly regions, the North-East, and island territories in UDAN 4.0, and further promoting seaplane operations under UDAN 5.0 series.
Components of UDAN Scheme
- Viability Gap Funding (VGF): Financial support to airlines to ensure affordable fares.
- Airfare Cap to ensure affordability.
- Collaborative Governance between Centre, States, Airport Authority of India (AAI), and private airport operators.
- Stakeholder Incentives: The government has implemented several supportive measures to attract airlines to operate flights in less lucrative markets:
- Airport Operators: They waive landing and parking charges for RCS flights, and the Airports Authority of India (AAI) does not levy Terminal Navigation Landing Charges (TNLC) on these flights. Moreover, a discounted Route Navigation and Facilitation Charge (RNFC) is applied.
- Central Government: For the first three years, excise duty on Aviation Turbine Fuel (ATF) purchased at RCS airports is capped at 2%. Airlines are also encouraged to enter code-sharing agreements to expand their reach.
- State Governments: States have committed to reducing VAT on ATF to 1% or less for ten years and providing essential services such as security, fire services, and utility services at reduced rates.
Evolution of the UDAN Scheme: From Inception to Expansion
Since its launch in 2016, the UDAN scheme has evolved through multiple rounds, each expanding India's regional air connectivity scope and scale. Below is a summary of the key phases:
Key Innovations under UDAN Scheme
- UDAN Yatri Cafes: In line with the vision of making air travel more inclusive, affordable Yatri Cafes have been launched at Kolkata and Chennai airports, offering quality food at accessible prices—tea for ₹10 and samosas for ₹20.
- Krishi UDAN Scheme: Designed to support farmers and improve value realisation for agri-produce, Krishi UDAN facilitates timely and cost-effective air logistics, particularly from Northeast, hilly, and tribal regions. This multi-ministry convergence scheme currently covers 58 airports, with a focus on 25 priority airports and 33 others nationwide.
- Airport Infrastructure Development: The government has committed to developing 50 new airports over the next 5 years. This includes new greenfield airports in Bihar, expansion of Patna Airport, and development of a brownfield airport at Bihta, aiming to meet the future demand for air travel and regional growth.
Infographics Based on Viksit UDAN Scheme
UDAN is more than a policy—it's a transformative movement that has redefined the aviation narrative in India. By bridging the skies between Bharat and India, the scheme has made the dream of affordable air travel a reality for millions. It has not only brought remote regions onto the national aviation map but has also spurred local economies, boosted tourism, and generated employment across the country. As India marches towards becoming a global aviation hub, UDAN stands tall as a symbol of inclusive growth, resilience, and visionary governance, carrying the aspirations of a new India, one flight at a time.
Source: PIB
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