UDAN Scheme, Components, Development, Achievement, Impact

The UDAN (Ude Desh ka Aam Nagrik) Scheme is one of the most significant initiatives by the Government of India to enhance regional air connectivity and make air travel affordable for the common citizen. Launched in 2016 under the National Civil Aviation Policy (NCAP), it seeks to connect unserved and underserved airports across the country through a viability gap funding (VGF) model. By making air travel accessible, UDAN contributes to balanced regional growth, economic integration, and improved infrastructure in remote areas.

UDAN Scheme

Since its inception, the UDAN Scheme has been a landmark reform in India’s civil aviation sector. Its goal is to connect Tier-2 and Tier-3 cities through affordable flights while ensuring that airlines can sustain operations through Viability Gap Funding (VGF) support. This has encouraged carriers to operate flights to regions previously left off the aviation map. This large-scale development has not only improved connectivity but also promoted tourism, trade, healthcare access, and job creation across smaller towns and remote regions.

UDAN Scheme Components

The UDAN scheme functions through a combination of financial assistance, fare caps, and multi-level collaboration among stakeholders. Major Components:

1. Viability Gap Funding (VGF): Airlines receive financial support to keep fares affordable for passengers.
2. Airfare Cap: Fares are capped to ensure affordability for common citizens.
3. Collaborative Governance: The scheme operates through cooperation between the Central Government, State Governments, Airport Authority of India (AAI), and private airport operators.
4. Stakeholder Incentives:
   • Airport Operators: Waive landing, parking, and Terminal Navigation Landing Charges (TNLC) for RCS flights.
   • Central Government: Limits excise duty on Aviation Turbine Fuel (ATF) to 2% for RCS airports.
   • State Governments: Reduce VAT on ATF to 1% or less for 10 years and provide essential airport services at lower costs.

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UDAN Scheme Phases (2016-2025)

The UDAN scheme has undergone several phases, each improving and expanding its scope. Through these phases, UDAN has built a resilient aviation network, connecting remote regions like the Northeast, Ladakh, and island territories.

UDAN 1.0 (2017)

• Launch: First flight Shimla-Delhi (April 27, 2017).
• Coverage: 5 airlines awarded 128 routes across 70 airports, including 36 new airports.

UDAN 2.0 (2018)

• Expanded to 73 underserved airports and included helipads for the first time.

UDAN 3.0 (2019)

• Introduced Tourism Routes and Seaplane operations.
• Brought many North-Eastern routes under coverage.

UDAN 4.0 (2020)

• Focused on hilly, island, and border regions, strengthening helicopter and seaplane services.

UDAN 5.0 Series (2023-2025)

A major reform phase to make operations faster and more efficient.

• UDAN 5.0 (April 2023): Removed the 600 km distance cap and emphasized faster commencement of flights.
• UDAN 5.1 (May 2023): Strengthened helicopter connectivity in remote regions.
• UDAN 5.2 (July 2023): Supported small aircraft operations (<20 seats) for last-mile connectivity.
• UDAN 5.3 & 5.4 (2024): Revived discontinued routes and expanded seaplane services.
• UDAN 5.5 (2025): Invited bids for 50+ water bodies, enhancing multimodal transport through seaplanes.

UDAN Scheme Developments

The key innovations and future aspects of development under the UDAN Scheme has been discussed below as per the data released through official sources:

• UDAN Yatri Cafes: To make air travel more inclusive, UDAN Yatri Cafes were launched at Kolkata and Chennai airports. They provide quality meals at nominal prices, tea for ₹10 and samosas for ₹20, enhancing passenger comfort.
• Seaplane Operations: Introduced to boost last-mile connectivity and regional tourism, seaplane guidelines were released on August 22, 2024, ensuring operational and safety standards.
• Revamped UDAN Initiative: A revamped version of UDAN aims to add 120 new destinations and provide affordable flights to 4 crore new passengers over the next decade. Priority will be given to remote, hilly, and aspirational districts, especially in the North Eastern region.
• Krishi UDAN Scheme: Launched to support farmers by improving the air transport of perishable agricultural produce. Covering 58 airports (including 25 priority airports), the scheme connects farmers in remote areas to national and global markets.
• Airport Infrastructure Development: The government plans to build 50 new airports in the next five years, including new greenfield airports in Bihar, expansion of Patna Airport, and a brownfield airport at Bihta. This aims to cater to the rising air travel demand and enhance regional development.

UDAN Scheme Achievements (2016-2025)

These achievements showcase how UDAN has turned India into one of the world’s fastest-growing aviation markets while strengthening regional economies.

• 625 routes operationalized, covering 90 airports (including 15 heliports and 2 water aerodromes).
• 3 lakh UDAN flights operated nationwide.
• Over 1.49 crore passengers benefited from affordable fares.
• 102 new routes launched in 2024, including 20 in the Northeast region.
• ₹4,023.37 crore disbursed as Viability Gap Funding by March 2025.
• Enhanced air connectivity to Khajuraho, Amritsar, Ajmer, Deoghar, and Northeast India.
• Supported growth of regional airlines like Flybig, Star Air, IndiaOne Air, and Fly91.

UDAN Scheme Impact

The UDAN Scheme has been instrumental in transforming smaller cities into aviation hubs. By linking regions like the Northeast, Jammu and Kashmir, Himachal Pradesh, and the Andaman Islands, it has improved- Tourism and hospitality opportunities, Healthcare access through faster connectivity, Regional trade and logistics and Employment generation in aviation and ancillary sectors. It has bridged the gap between urban and rural India, ensuring that development is not limited to metros.

Its benefits can be seen in several ways:

• Economic Growth: Boosted trade and business in small towns.
• Tourism Development: Made it easier for people to visit remote and historic sites.
• Better Healthcare Access: Allowed faster travel for patients to big hospitals.
• Job Opportunities: Created jobs in airports, tourism, and transport sectors.
• Balanced Development: Reduced the gap between cities and villages by improving connectivity.

UDAN Scheme UPSC

As of October 2025, the scheme has entered into its 9th year since commencement. In the Union Budget 2025-26, the government allocated Rs 540 crore for the UDAN scheme, 32% less than last year. Air travel in India, once seen as a luxury, has now become a part of everyday life for millions. This transformation is the result of the Government of India’s Regional Connectivity Scheme (RCS)- UDAN (“Ude Desh ka Aam Nagrik”), launched on 21 October 2016. The vision, inspired by Prime Minister Shri Narendra Modi’s dream that even a person wearing hawai chappal should fly in a hawai jahaz, has democratized Indian aviation. The scheme, implemented by the Ministry of Civil Aviation (MoCA), aims to make flying affordable, accessible, and widespread across India’s smaller cities and towns. The first UDAN flight was launched on 27 April 2017, connecting Shimla and Delhi, marking a major milestone in India’s aviation history. As of April 2025, UDAN has completed eight successful years, establishing itself as a symbol of inclusive growth and regional connectivity.