Civil Aviation Minister Ram Mohan Naidu inaugurates stakeholder workshop on Modified UDAN

Key Highlights:

• Union Minister of Civil Aviation, Shri Rammohan Naidu Kinjarapu, inaugurated a workshop on the Modified UDAN scheme in New Delhi.
• The Modified UDAN scheme was launched by Prime Minister Shri Narendra Modi on July 4, 2026, from Jodhpur Airport.
• India's airport count increased from 74 in 2014 to 164 in 2026, with 90 new airports added in 12 years, including 55 revived unutilized airstrips.
• Key changes in Modified UDAN include removal of RCS airfare caps on 50% seats for larger aircraft and extended Viability Gap Funding (VGF) for 5 years with a tapered mechanism.
• A new budget of approximately ₹12,159 Cr is allocated for developing 100 airports and ₹3,661 Cr for 200 modern helipads under the scheme.
• The scheme introduces a requirement for airlines to hold an Air Operator Permit (AOP) to bid on routes, ensuring timely operationalization.

Detailed Insights:

• The workshop aimed to define the future roadmap for regional air connectivity, promoting balanced regional development across India.
• The Minister highlighted the transformation of India's civil aviation landscape, making air travel accessible to the common person, aligning with the "Hawai Chappal se Hawai Jahaz" vision.
• India recorded its highest-ever monthly domestic air traffic in May, serving over 1.5 crore passengers, demonstrating the sector's resilience.
• Modified UDAN allows for the acquisition of 2 HAL Dhruv helicopters and 2 HAL Dornier aircraft for PHL and Alliance Air respectively, under Aatmanirbhar Bharat.
• Aerodrome development will now be prioritized through a challenge mode, with airlines using a market-based approach to select routes.
• The scheme provides 3-year Operation & Maintenance (O&M) support for manpower salary costs at aerodromes and heliports developed under RCS.
• Efforts will be made to allocate viable slots at metro/major airports for RCS operations to enhance route sustainability.
• The definition of "Served" aerodromes has been updated with new criteria for weekly departures, city pairs, and total passengers.
• MoCA will include state-recommended routes in the scheme, which will be prioritized during the award process to holistically enhance regional connectivity.

Key Concepts Involved:

• UDAN Scheme (Ude Desh ka Aam Nagrik): A regional connectivity scheme to make air travel affordable and widespread.
• Viability Gap Funding (VGF): Financial support provided by the government to make economically desirable but financially unviable projects commercially viable.
• Regional Connectivity Scheme (RCS): The formal name for the UDAN scheme, focusing on connecting underserved and unserved airports.
• Air Operator Permit (AOP): A license issued by the Directorate General of Civil Aviation (DGCA) required for an airline to operate commercial flights.