Wings of Change

Key Highlights:

• UDAN (Ude Desh ka Aam Nagrik) scheme completes ten years in 2026, significantly expanding India's regional aviation network.
• Launched on October 21, 2016, it has operationalized 687 regional routes and 95 aerodromes, serving 1.72 crore passengers.
• India is now the world’s third-largest domestic aviation market, with operational airports increasing from 74 (2014) to 166.
• The Modified UDAN Scheme was launched on July 4, 2026, with a total outlay of ₹28,840 crore for FY 2026-27 to FY 2035-36.
• It focuses on strengthening aviation infrastructure, ensuring operational sustainability, and expanding regional air connectivity.

Detailed Insights:

• The scheme aligns with the National Civil Aviation Policy 2016 to prioritize affordable regional connectivity through financial support.
• It uses market-based selection, airfare caps, concessions, and Viability Gap Funding (VGF) to encourage airline participation.
• Over ₹5091.23 crore has been disbursed under VGF as of October 15, 2026, to support regional routes.
• The Modified UDAN Scheme includes developing 100 airports from existing airstrips and 200 modern helipads.
• It allocates ₹10,043 crore for VGF to airlines over ten years and ₹400 crore for indigenous aircraft under Atmanirbhar Bharat.
• The new phase emphasizes Centre-State/UT partnerships and a Challenge Mode Portal for aerodrome development.
• Regional air connectivity has boosted tourism, medical access, agricultural trade, and local employment.
• Job growth in the civil aviation sector increased from 3 million (2014) to 7.7 million (2026), with potential to reach 25 million by 2040.

Key Concepts Involved:

• UDAN (Ude Desh ka Aam Nagrik): A Regional Connectivity Scheme (RCS) launched to make air travel affordable and widespread.
• Viability Gap Funding (VGF): Financial support provided by the government to make economically unviable infrastructure projects commercially viable.
• National Civil Aviation Policy 2016: A policy framework aiming to enhance air connectivity, promote ease of doing business, and ensure affordable air travel.
• Atmanirbhar Bharat: A vision of making India a self-reliant nation, including in critical sectors like aviation manufacturing.