{"id":94959,"date":"2026-03-26T11:49:12","date_gmt":"2026-03-26T06:19:12","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=94959"},"modified":"2026-03-26T12:00:47","modified_gmt":"2026-03-26T06:30:47","slug":"udan-scheme-revamp-explained","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/udan-scheme-revamp-explained\/","title":{"rendered":"UDAN Scheme Revamp &#8211; Expanding Regional Air Connectivity"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><strong>UDAN Scheme Latest News<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Union Cabinet has approved a revamped <\/span><b>UDAN Scheme<\/b><span style=\"font-weight: 400;\"> with higher funding and extended subsidy support.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>UDAN Scheme<\/strong><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">The <\/span><b>Ude Desh ka Aam Nagrik (UDAN)<\/b><span style=\"font-weight: 400;\"> scheme was launched in 2017 under the Regional Connectivity Scheme (RCS) to enhance air connectivity to underserved and unserved regions.<\/span><\/li>\n<li aria-level=\"1\"><b>Objectives<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Improve regional connectivity across Tier-2 and Tier-3 cities.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Make air travel affordable for common citizens.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Promote balanced regional development.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Enhance the infrastructure utilisation of unused and underutilised airports.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Key Features<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Airlines are selected through a <\/span><b>competitive bidding mechanism<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Viability Gap Funding (VGF) is provided to airlines to operate on less profitable routes.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">50% of seats are offered at a capped fare of around Rs. 2,500 per hour of flight.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Focus on connecting remote, hilly, and island regions.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Funding Mechanism<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Initially funded through a <\/span><b>Regional Connectivity Scheme levy<\/b><span style=\"font-weight: 400;\"> imposed on flights operating on major routes.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The levy subsidised airlines operating on regional routes.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Achievements of the Scheme<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Over 600 routes have been operationalised since launch.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">More than 90 airports, including many previously unused airstrips, have been revived.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Improved last-mile connectivity in remote areas such as the North-East and hilly regions.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Challenges<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Low route viability after subsidy withdrawal.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Limited passenger demand in certain regions.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Operational challenges such as infrastructure gaps and airline sustainability.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">High discontinuation rate of routes after the subsidy period.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>News Summary<\/strong><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">The government has approved a major revamp of the UDAN scheme to address structural issues and improve sustainability.<\/span><\/li>\n<li aria-level=\"1\"><b>Increased Funding and Scope<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The revamped scheme has a total outlay of <\/span><b>Rs. 28,840 crore<\/b><span style=\"font-weight: 400;\">, which marks a nearly six-fold increase from the earlier allocation.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The scheme now goes beyond airport redevelopment to include support for operations and maintenance.<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Extension of Subsidy Period<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Subsidy support for airlines has been extended from <\/span><b>three years to five years<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">This aims to improve route viability and reduce premature discontinuation.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Shift in Funding Source<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Subsidy funding will now come directly from the <\/span><b>government exchequer<\/b><span style=\"font-weight: 400;\"> instead of the RCS levy.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">This marks a significant policy shift in financing the scheme.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Viability Concerns Highlighted<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The revamp was triggered by poor performance under the earlier scheme:<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Over <\/span><b>90% of routes fell into disuse<\/b><span style=\"font-weight: 400;\"> after subsidy withdrawal.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Only about 7%-10% of routes remained viable beyond the subsidy period, as noted by a CAG report.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Out of 663 routes launched since 2017, 327 have been discontinued.<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Airport Infrastructure and Expansion<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">100 additional airports will be redeveloped with an outlay of Rs. 12,159 crore.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Around 441 aerodromes will receive operational and maintenance support.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">This reflects a shift from infrastructure creation to sustained operational support.<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Focus on Last-Mile Connectivity<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Development of <\/span><b>200 helipads<\/b><span style=\"font-weight: 400;\"> to improve connectivity in remote regions.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Investment in helicopters and small aircraft to strengthen regional aviation networks.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Support for Aircraft Procurement<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Procurement of HAL Dhruv helicopters for Pawan Hans.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Procurement of HAL Dornier aircraft for Alliance Air.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">This aims to enhance fleet availability for regional routes.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><b>Source:<\/b> <strong><a href=\"https:\/\/www.thehindu.com\/news\/national\/govt-clears-28840-crore-revamped-udan-scheme-offers-support-for-airport-operations-shifts-airline-subsidy-burden-to-exchequer\/article70783818.ece#:~:text=On%20Wednesday%20(March%2025%2C%202026,over%20the%20next%2010%20years.\" target=\"_blank\" rel=\"nofollow noopener\">TH<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>UDAN Scheme revamp boosts funding, extends subsidies, and enhances regional air connectivity to strengthen India\u2019s aviation sector and improve access to underserved areas.<\/p>\n","protected":false},"author":21,"featured_media":94980,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[60,3473,22,59],"class_list":{"0":"post-94959","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-mains-articles","9":"tag-udan-scheme","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/94959","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=94959"}],"version-history":[{"count":3,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/94959\/revisions"}],"predecessor-version":[{"id":94982,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/94959\/revisions\/94982"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/94980"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=94959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=94959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=94959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}