The UDAN scheme has served more than 1.49 crore passengers since its launch on October 21, 2016, as India’s regional aviation initiative completes 10 years. The Civil Aviation Ministry highlighted the scheme’s progress in a factsheet issued on Tuesday, noting its role in expanding affordable air connectivity to underserved regions.
UDAN Scheme Connects 90 Airports Through 625 Routes
With as many as 625 UDAN routes being operationalised, connecting 90 airports (including 2 water aerodromes, and 15 heliports) across India, the scheme has not only brought remote regions onto the national aviation map but has also spurred local economies, boosted tourism, and generated employment across the country. UDAN strengthened regional tourism, healthcare access, and trade, catalyzing economic growth in Tier-2 and Tier-3 cities, the factsheet states.
Next Phase to Add 120 Destinations
Building on the success of the original scheme, a revamped version aims to add 120 new destinations and enable affordable air travel for 4 crore more passengers over the next decade.
The focus will be on expanding connectivity to remote, hilly, and aspirational districts, especially in the North Eastern region, with special support for helipads and smaller airports.
India’s Airport Network More Than Doubles
India’s airport network expanded from 74 airports in 2014 to 159 airports in 2024, more than doubling in a decade. The government has further committed to developing 50 new airports over the next 5 years.
This includes new greenfield airports in Bihar, expansion of Patna Airport, and development of a brownfield airport at Bihta, aiming to meet the future demand for air travel and regional growth.
₹4,023 Crore in Viability Gap Funding
The scheme has been driven by various incentives such as ₹4,023.37 crore disbursed as Viability Gap Funding (VGF) to promote connectivity to underserved and remote regions.
Landing and parking charges for RCS flights were waived to promote these flights, and the Airports Authority of India (AAI) does not levy Terminal Navigation Landing Charges (TNLC) on these flights. Moreover, a discounted Route Navigation and Facilitation Charge (RNFC) is applied.
Tax Relief and Incentives for Airlines
For the first three years, excise duty on Aviation Turbine Fuel (ATF) purchased at RCS airports is capped at 2 per cent. Airlines are also encouraged to enter code-sharing agreements to expand their reach.
States have also committed to reducing VAT on ATF to 1 per cent or less for ten years and providing essential services such as security, fire services, and utility services at reduced rates.
This collaborative framework has fostered an environment where airlines can thrive while serving regions that have long been overlooked, the factsheet observes.
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