- India
- Mar 26
- Sreesha V.M
Cabinet clears Modified UDAN scheme for 10 years
• The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the launch and implementation of the Regional Connectivity Scheme - Modified UDAN for a period of ten years from FY 2026-27 to FY 2035-36.
What is UDAN scheme?
• UDAN (Ude Desh Ka Aam Nagrik) is a key component of the National Civil Aviation Policy (NCAP), 2016.
• The Ministry of Civil Aviation launched the RCS-UDAN scheme on October 21, 2016.
• The first RCS-UDAN flight was inaugurated by Prime Minister Narendra Modi on April 27, 2017 from Shimla to Delhi.
• The primary objective of the regional connectivity scheme (RCS) is to facilitate and stimulate regional air connectivity by making it affordable.
• The regional connectivity scheme will be applicable on route length between 200 to 800 km with no lower limit set for hilly, remote, island and security sensitive regions.
• RCS-UDAN is a demand-driven scheme, where airline operators undertake assessment of demand on particular routes.
Impact of UDAN
• As on February 28, as many as 663 routes have been operationalised across 95 airports, heliports and water aerodromes.
• More than 3.41 lakh flights have been operated, carrying 162.47 lakh passengers.
• Connectivity has been established in remote, hilly and island regions, boosting tourism, healthcare access and emergency services.
• The existing UDAN scheme ends later this year.
• The scheme has fostered growth in regional airlines and diverse fleet operations, laying a strong foundation for the Modified UDAN Scheme.
• India has emerged as the world’s third-largest domestic aviation market.
Key components of the modified scheme:
1) Development of Aerodromes (CAPEX)
It is proposed to develop 100 airports from existing unserved airstrips to enhance regional connectivity, in line with the Viksit Bharat@2047 vision of infrastructure expansion and transforming India into a globally competitive aviation ecosystem with a total outlay of Rs 12,159 crore over the next eight years.
2) Operation & Maintenance (O&M) of Aerodromes
Given the high recurring O&M costs and limited revenue streams for Regional Connectivity Scheme (RCS)-only aerodromes, the scheme proposes to provide O&M support for three years capped at Rs 3.06 crore per annum per airport and Rs 0.90 crore per annum per heliport/water aerodrome, estimated at Rs 2,577 crore for around 441 aerodromes.
3) Development of Modern Helipads
To address connectivity challenges in hilly, remote, island and aspirational regions, the scheme proposes developing 200 modern helipads at Rs 15 crore each, amounting to a total requirement of Rs 3,661 crore over the next eight years (inflation-adjusted), focused on priority and aspirational districts to improve last-mile connectivity and emergency response.
4) Viability Gap Funding (VGF)
Under the Regional Connectivity Scheme, airline operators receive financial support in the form of Viability Gap Funding (VGF) for operating awarded routes. Recognising the need for longer market development, VGF support to airline operators is proposed amounting to Rs 10,043 crore over 10 years.
5) Atmanirbhar Bharat Aircraft Acquisition
To address the shortage of small fixed-wing aircraft and helicopters required for operations in remote and difficult terrains and to advance the Atmanirbhar Bharat vision, the scheme also proposes to procure two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air.
(The author is a trainer for Civil Services aspirants.)