Modified UDAN: Strengthening India’s Regional Aviation Network

Key Highlights:

• The Modified UDAN scheme will be implemented from FY 2026–27 to FY 2035–36 with an outlay of ₹28,840 crore.
• It aims to develop 100 new airports from existing unserved airstrips and 200 modern helipads.
• The original UDAN scheme operationalized 679 routes across 95 airports, heliports, and water aerodromes over nine years.
• Over 1.68 crore passengers have flown on more than 3.58 lakh flights under the UDAN scheme.
• India's operational airports increased from 74 in 2014 to 165 as of July 15, 2026.

Detailed Insights:

• The Regional Connectivity Scheme (RCS) – UDAN was launched in October 2016 to make air travel affordable and accessible, expanding connectivity to underserved regions.
• The Modified UDAN scheme emphasizes expanding airport infrastructure, improving operational support, and creating a viable ecosystem for airline operators.
• Components of Modified UDAN include ₹12,159 crore for aerodrome development and ₹3,661 crore for helipad development over eight years.
• It provides Operation and Maintenance support for smaller aerodromes, capped at ₹3.06 crore per annum per airport for three years.
• Viability Gap Funding (VGF) of ₹10,043 crore is proposed for airlines over ten years, with funding support for up to five years per route.
• The scheme incorporates Atmanirbhar Bharat by proposing HAL Dhruv helicopters for Pawan Hans and HAL Dornier aircraft for Alliance Air.
• UDAN has significantly reduced travel times, improved access to essential services, and supported tourism in remote and hilly areas.
• The RCS levy mechanism, a small fee on selected domestic flights, funds the scheme from within the aviation sector.

Key Concepts Involved:

• UDAN (Ude Desh ka Aam Nagrik): A regional airport development and regional connectivity scheme of the Government of India.
• Regional Connectivity Scheme (RCS): A component of the National Civil Aviation Policy aimed at enhancing air connectivity to unserved and underserved airports.
• Viability Gap Funding (VGF): Financial support provided by the government to make economically unviable but socially desirable projects commercially viable.
• RCS Levy: A charge imposed on certain domestic flights to generate funds for the UDAN scheme's Viability Gap Funding.
• Atmanirbhar Bharat: A vision of making India a self-reliant nation, promoting indigenous manufacturing and capabilities.