SYLLABUS

GS-3: Infrastructure: Airports, etc.; Indian Economy and issues relating to planning, mobilization of resources, growth, development, and employment.

Context: The Regional Connectivity Scheme (RCS)–UDAN completed ten years on 21 October 2026, having expanded regional air connectivity in India, while the Modified UDAN Scheme seeks to address infrastructure gaps and improve the long-term sustainability of regional aviation.

Understanding UDAN (Ude Desh ka Aam Nagrik) 

• Launched on 21 October 2016 under the National Civil Aviation Policy (NCAP), 2016, by the Ministry of Civil Aviation to make air travel affordable and connect unserved and underserved regions.

• First Flight: The first UDAN flight operated between Shimla and Delhi on 27 April 2017.

• Implementation Mechanism: The scheme uses market-based route selection, airfare caps, concessions and Viability Gap Funding (VGF) to encourage airlines to operate routes that may initially be commercially unviable.

• Major Focus Areas: The modified scheme emphasises airport development, operation and maintenance support, modern helipads, financial assistance for regional airline operations and indigenous aviation capacity.

Modified UDAN Scheme (2026–2036)

• The next phase of UDAN was launched on 4 July 2026, with a total outlay of ₹28,840 crore for ten years. 

• It focuses on sustainable regional aviation, infrastructure development and indigenous aviation capacity.

• Three-Pronged Approach:

• Centre–State/UT Coordination: A total of 21 Memoranda of Understanding (MoUs) were signed between the Government, participating States and Union Territories, and the Airports Authority of India (AAI) to coordinate aviation infrastructure development.
• Challenge Mode Portal: Enables State Governments and UT Administrations to nominate airstrips and helipads for development based on regional connectivity requirements.
• Sustainable Regional Connectivity: Combines infrastructure development, operational support and indigenous aviation capacity to improve the long-term viability of regional aviation.

Key Achievements of UDAN

• Expanded Connectivity: Operationalised 687 regional routes and 95 aerodromes, including 17 heliports and two water aerodromes.

• Passenger and Flight Growth: Facilitated more than 3.68 lakh flights carrying approximately 1.72 crore passengers.

• North-Eastern Connectivity: Operationalised 90 priority regional routes, with 12 of the 52 identified aerodromes in the region becoming operational.

• Regional Development: Improved access to tourism, healthcare and agricultural markets through airports such as Purnea, Tezu, Deoghar and Kishangarh.

• Financial Support: Disbursed ₹5,091.23 crore in VGF as of 15 October 2026 to support airline operations on regional routes.

Shortcomings or Gaps in UDAN

• Route Discontinuation: The supplied industry analysis reports that 327 of 663 routes launched under earlier phases were discontinued, highlighting difficulties in sustaining services.

• Low Passenger Traffic: UDAN airports account for only around 2–3% of domestic passenger traffic, according to the cited CRISIL analysis, indicating limited utilisation across much of the network.

• High Operating Costs: Smaller aircraft, low passenger demand and competition from road and rail transport can make regional routes commercially unattractive.

• Infrastructure and Planning Gaps: Some airports remain non-operational or underutilised, while weak demand assessment and recurring maintenance costs can undermine long-term connectivity.