Modified UDAN Scheme

Modified UDAN Scheme Latest News

The Prime Minister recently inaugurated the new terminal building at Jodhpur airport and launched the modified UDAN Scheme. 

About Modified UDAN Scheme

• With an allocation of Rs 28,840 crore over the next 10 years, the scheme aims to accelerate the next phase of aviation-led development.
• A key emphasis is on the development of 100 aerodromes from existing unserved airstrips, supported by an outlay of over Rs 12,000 crore, to expand aviation infrastructure across the country. 
• Over Rs 2,500 crore has been earmarked for Operations and Maintenance (O&M) support to ensure the viability of regional airports during their initial years of operation. 
• Additionally, an investment of ₹3,661 crore will fund the creation of 200 modern helipads, and a continued Viability Gap Funding of ₹10,043 crore for airlines to sustain regional airline operations. 
• The scheme promotes the induction of indigenous aircraft and helicopters, including HAL Dhruv and Dornier platforms, for operations in underserved and remote regions. 

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About UDAN Scheme

• The Ude Desh ka Aam Nagrik (UDAN) scheme is a Regional Connectivity Scheme (RCS) launched in October 2016 by the Government of India to enhance air connectivity to underserved and unserved regions.
• Objectives:
  • Improve regional connectivity across Tier-2 and Tier-3 cities. 
  • Make air travel affordable for common citizens. 
  • Promote balanced regional development. 
  • Enhance the infrastructure utilisation of unused and underutilised airports. 
• The mission has two parts. 
  • First, make air travel affordable on short regional sectors where train journeys take 10-18 hours. 
  • Second, revive unserved and underserved airports — places that had runways but no scheduled commercial flights.
• The first UDAN flight took off on 27 April 2017, connecting Shimla to Delhi. 
• Key Features:
  • Airlines are selected through a competitive bidding mechanism. 
  • Viability Gap Funding (VGF) is provided to airlines to operate on less profitable routes. 
  • The Airports Authority of India has also waived off the airport fee for the same.
  • At the same time, the state governments are also providing security, electricity, and fire-fighting facilities free of cost. 
  • 50% of seats are offered at a capped fare of around Rs. 2,500 per hour of flight. 
  • Focus on connecting remote, hilly, and island regions. 
• Funding Mechanism:
  • Initially funded through a Regional Connectivity Scheme levy imposed on flights operating on major routes. 
  • The levy subsidised airlines operating on regional routes.
• The Ministry of Civil Aviation runs it through the Airports Authority of India (AAI), which acts as the implementing agency for bidding, monitoring, and viability gap funding payouts to airlines.
• Phase-by-phase Summary:
  • UDAN 1.0 (2017): 128 routes awarded; first commercial flight Delhi–Shimla.
  • UDAN 2.0 (2018): added priority areas including the North-East, hill states, islands; helicopter routes introduced.
  • UDAN 3.0 (2018-19): tourism-focused routes, seaplane operations, and select international connectivity.
  • UDAN 4.0 (2020): further expansion to remote areas and water aerodromes, longer stage length allowed.
  • UDAN 5.0 onwards: stage length raised to enable longer regional links; relaxation of viability period rules; helicopter and small-aircraft sub-schemes (Sagarmala Seaplane, Krishi UDAN, etc.)

News: TH