SYLLABUS

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

Context: The Prime Minister launched Viksit UDAN, the next phase of the Regional Connectivity Scheme (RCS)-UDAN, aimed at expanding regional air connectivity and strengthening India’s aviation ecosystem in line with the vision of Viksit Bharat 2047.

More on the News

• The launch of Viksit UDAN follows the Union Cabinet’s approval of the Modified UDAN Scheme in March 2026, with an outlay of ₹28,840 crore for the period 2026–2036 to expand regional connectivity and strengthen aviation infrastructure.
• Under Viksit UDAN, the government aims to develop 100 new airports from existing unserved airstrips through a challenge-based approach.
• The scheme places special emphasis on remote, hilly, North-Eastern, island and aspirational regions, while also enhancing connectivity to tourism destinations.
• Since its launch, UDAN has operationalised 669 routes, connecting 95 airports, heliports and water aerodromes, and facilitating air travel for over 1.66 crore passengers.

Key Features of Viksit UDAN

• Development of 100 New Airports: An outlay of ₹12,159 crore has been earmarked for developing 100 airports from existing unserved airstrips over the next eight years, significantly expanding regional aviation infrastructure.
• Enhanced Last-Mile Connectivity: The scheme proposes the development of 200 helipads in hilly, remote, island and aspirational regions with an outlay of ₹3,661 crore to improve accessibility and emergency response capabilities.
• Operational Support for Aerodromes: Operation and Maintenance (O&M) support worth ₹2,577 crore will be provided to RCS-only aerodromes, heliports and water aerodromes to improve their long-term sustainability.
• Strengthened Viability Gap Funding: The scheme allocates ₹10,043 crore towards VGF for airline operators for a 10-year period. Unlike the earlier framework, airlines will receive support for five years, with funding gradually tapering from the third year onwards.
• Promoting Atmanirbhar Bharat: The scheme promotes the induction of indigenous aircraft and helicopters, including HAL Dhruv and Dornier platforms, for operations in underserved and remote regions to further the vision of Atmanirbhar Bharat.

Significance for India’s Aviation Sector

• Bridging India’s Connectivity Deficit: By developing 100 new airports and expanding air access to remote, hilly and aspirational regions, Viksit UDAN seeks to address persistent gaps in regional aviation infrastructure.
• Strengthening Regional Economic Hubs: Improved air connectivity can integrate smaller cities into national and global value chains, boosting tourism, trade, logistics and investment flows.
• Enhancing Aviation Accessibility: Continued fare support and expansion of regional routes can deepen the democratization of air travel, making aviation more accessible beyond metropolitan centres.
• Building a Future-Ready Aviation Ecosystem: Investments in airports, helipads, route sustainability and indigenous aircraft procurement can strengthen India’s long-term aviation capacity under the Viksit Bharat 2047 vision.

Implementation Challenges

• Commercial Viability: A significant proportion of UDAN routes struggled to remain operational after the withdrawal of Viability Gap Funding (VGF).
  A formal audit by the Comptroller and Auditor General (CAG) revealed that only 7% to 10% of the flight routes successfully remained commercially sustainable once the initial three-year government subsidy window ended.
• Infrastructure Readiness: While UDAN has operationalised 669 routes, India still has a large number of unserved and underutilised airstrips.
• Airline Participation: Regional routes often witness lower passenger loads and higher operating costs, particularly in hilly, remote and island regions.
• Environmental Sustainability: India is among the world’s fastest-growing aviation markets, and the planned expansion of airports, flights and regional connectivity could increase aviation-related emissions. Thus, ensuring growth while promoting Sustainable Aviation Fuel (SAF), energy-efficient airports and cleaner aviation technologies will remain a key policy challenge.

Way Forward

• Shift from Connectivity to Viability: Alongside infrastructure creation, greater focus is needed on generating sustainable passenger demand and ensuring long-term route profitability.
• Leverage Regional Growth Drivers: Align regional air connectivity with tourism circuits, industrial corridors, logistics hubs and aspirational districts to maximize economic returns.
• Strengthen Integrated Transport Networks: Develop seamless linkages between airports and road, rail, waterways and public transport systems to improve last-mile connectivity.
• Promote Sustainable Regional Aviation: Scale up the adoption of Sustainable Aviation Fuel (SAF), green airport infrastructure and cleaner technologies to ensure environmentally responsible growth.