10 years of UDAN: Scheme enables 1.72 million passengers; the government will spend ₹ 5,091 crore | Today’s news
India’s regional air connectivity system, UDAN, has enabled 1.72 million passengers to travel by air since its launch in October 2016, operating 687 routes across the country, according to the Press Information Bureau (PIB), released on Tuesday ahead of the system’s tenth anniversary.
Titled Wings of Change: 10 Years of Redefining Regional Air Connectivity through UDAN, the author highlights the expansion of regional aviation and the government’s efforts to improve air connectivity to smaller cities and remote areas through financial assistance and policy support.
UDAN operates 687 routes and carries 1.72 million passengers
Since its launch, the UDAN scheme has facilitated more than 3.68 lakh flights across the country, according to a PIB report. It has also helped operationalize 95 airports, including 17 helipads and two seaplanes, expanding access to air travel in underserved and remote regions.
The aim of the program is to make air travel more accessible by encouraging airlines to operate routes that may not initially be commercially viable.
The government pays ₹5,091 crore in financial support
The government paid ₹5,091.23 crore in Viability Gap Funding (VGF) as of October 15 to support airline operations on regional routes, the author said.
Read also | Why India’s small-town airports are failing despite high spending
UDAN uses a combination of market selection, ticket caps, concessions and VGF to encourage airlines to serve routes with limited commercial viability.
However, the continued need for financial assistance underscores the challenges of ensuring the financial sustainability of regional aviation. Airlines operating in smaller markets may face constraints such as limited passenger demand and lower airport revenues, making it difficult to maintain service without government support.
Modified UDAN launched with ₹Expenses of 28,840 million crowns
To address these challenges and strengthen regional air connectivity, the government launched the Modified UDAN on July 4.
The program has approved expenses ₹28,840 crore over ten years, covering the financial years 2026-27 to 2035-36.
The initiative is aimed at continuing efforts to improve regional connectivity and support aviation infrastructure with a focus on making air travel accessible across the country.
Read also | India’s UDAN system slows down: Only 4 new airports added this fiscal year
“The modified UDAN system introduces targeted measures to support the sustainable growth and long-term viability of regional aviation,” the report said.
In the next phase, ₹10,043 million crowns have been earmarked to support the operation of airlines, while it is planned to build 100 airports from existing unused runways. The scheme also envisages development of 200 modern helipads and provision of operational support to around 441 airports.
In the northeastern states, 90 priority regional routes and 12 airports were put into operation as part of UDAN.
Going forward, the government aims to strengthen regional air links through infrastructure development, financial support and greater coordination with states.
“These measures seek to address infrastructure and viability issues for regional air transport,” the report points out.
The UDAN program was launched on 21 October 2016 to make air travel accessible and improve connectivity to unserved and underserved regions.
