UDAN (Ude Desh Ka Aam Naagrik) Scheme

Overview

UDAN (Ude Desh Ka Aam Naagrik) is a Regional Connectivity Scheme (RCS) launched on October 21, 2016, under the National Civil Aviation Policy 2016, by the Ministry of Civil Aviation. Its core objective is to make air travel affordable and accessible for the common citizen by connecting unserved and underserved airports across India, particularly in Tier-2 and Tier-3 towns, hilly regions, island territories, and the North Eastern Region.

Since its launch, UDAN has operationalised 625 routes connecting 90 airports (including 15 heliports and 2 water aerodromes), benefiting over 1.49 crore passengers with affordable regional air travel. The Union Budget 2025-26 allocated ₹540 crore for UDAN, a 7.5% increase over the previous year, with a vision to connect 120 new destinations over the next decade.

Key Features

• Airlines must cap airfares for 50% of total seats at ₹2,500 per hour of flight through a combination of financial incentives:
  • Viability Gap Funding (VGF): Government grant to bridge the gap between the cost of operations and expected revenue on unviable routes.
  • Regional Connectivity Fund (RCF): Partner State Governments contribute 20% of VGF; UTs and NER states contribute only 10%.
  • Concessions from Central Government, State Governments, and airport operators (reduced landing/parking charges, fuel excise waivers).
• No upper limit on the number of UDAN flights an airline can operate.

UDAN Phases

UDAN 5.5 (Latest Phase)

UDAN 5.5 specifically targets last-mile connectivity in the most remote regions:

• Focus on routes serviced exclusively by seaplanes, helicopters, and small aircraft (less than 20 passengers).
• Seaplane routes between 80+ water bodies (waterdromes, ponds, dams).
• ~400 helipads included for chopper routes.
• Aircraft categories: Category ‘1A’ (less than 9 passengers) and Category ‘1’ (less than 20 passengers).
• Bidding invited for over 50 identified water bodies across the country for seaplane operations.

Derivative Schemes

UDAN’s success led to the formulation of several derivative initiatives:

• Lifeline UDAN: Medical cargo transport during the COVID-19 pandemic.
• Krishi UDAN: Agricultural products airlifted from NER and tribal districts.
• International UDAN: Cross-border routes for NER connectivity.

Union Budget 2025-26 — Modified UDAN

The revised UDAN scheme announced in Union Budget 2025-26 aims to:

• Connect 120 additional destinations over the next 10 years
• Benefit approximately 4 crore additional passengers
• Focus on improving accessibility to hilly and northeastern regions
• Integrate smaller airports, helipads, and water aerodromes into the regional connectivity grid
• Develop greenfield airports, including new airports in Bihar

Latest Developments

• Modified UDAN Scheme (Budget 2025-26): Finance Minister Nirmala Sitharaman announced a Modified UDAN scheme in the Union Budget 2025-26 with a proposed outlay of Rs 30,000 crore — Rs 18,000 crore for new airport development (greenfield airports, airstrip refurbishment, heliports) and Rs 12,000 crore for Viability Gap Funding (VGF).
• 120 New Destinations Target: The Modified UDAN aims to connect 120 additional destinations over the next decade and benefit approximately 4 crore additional passengers.
• Updated Network Statistics (February 2026): The UDAN network now covers 93 airports (including 15 heliports and 2 water aerodromes), 657 operational routes, 10 airline operators, with over 1.59 crore passengers benefited and Rs 4,472 crore in VGF disbursed.
• Budget 2025-26 Allocation: Rs 540 crore allocated for UDAN in FY 2025-26, a 7.5% increase over the previous year.
• UDAN 5.5 — Last-Mile Connectivity: The latest phase focuses exclusively on seaplanes, helicopters, and small aircraft (under 20 passengers), targeting 80+ water bodies for seaplane routes and approximately 400 helipads for chopper routes.
• Bihar Airport Expansion: The Modified UDAN includes plans for greenfield airports in Bihar, expansion of Patna Airport, and a new brownfield airport in Bihta, signalling targeted development in underserved states.
• Airport Network Growth: India’s operational airport network has grown from 74 (2014) to 159 (2024), with UDAN as a key driver of this expansion into Tier-2/Tier-3 cities and remote regions.

Prelims Importance

• UDAN launched on October 21, 2016 under National Civil Aviation Policy 2016
• Full form: Ude Desh Ka Aam Naagrik (Let the Common Citizen Fly)
• Ministry: Ministry of Civil Aviation
• Fare cap: ₹2,500 per hour of flight for 50% of seats
• VGF (Viability Gap Funding) is the core financial mechanism
• RCF (Regional Connectivity Fund): States contribute 20%, NER/UTs contribute 10%
• Routes operationalised: 625; Airports connected: 90
• Airport network grew from 74 (2014) to 159 (2024)
• UDAN 5.0 (April 2023) removed the 600 km distance cap
• UDAN 5.5 focuses on seaplanes, helicopters, and small aircraft
• Budget 2025-26 allocation: ₹540 crore
• Total VGF disbursed: ₹4,023.37 crore
• Over 1.49 crore passengers have benefited

Mains & Interview Importance

GS3 — Infrastructure, Economic Development:

• Analyse UDAN as a tool for regional economic development and tourism promotion in Tier-2/Tier-3 cities.
• Discuss the Viability Gap Funding model as a public-private partnership mechanism for infrastructure.
• Evaluate the challenges airlines face in sustaining operations on low-demand UDAN routes after the VGF period ends.

Analytical Questions:

• “UDAN has connected 90 airports but many routes have been discontinued after the VGF period. Critically evaluate the long-term sustainability of the scheme.”
• “How does regional air connectivity contribute to balanced regional development? Discuss with reference to UDAN.”
• “Compare India’s UDAN with the Essential Air Service programme of the United States.”

Interview Angle: “Despite UDAN, air travel remains unaffordable for the truly common citizen. Is the scheme’s name aspirational or achievable? What reforms would you suggest?”