Major Cabinet Approval for Enhanced Regional Air Connectivity
In a significant move aimed at expanding India's aviation network, the Modi government on Wednesday gave its approval to a substantially modified version of the Regional Connectivity Scheme (RCS), popularly known as UDAN. The scheme has been extended for a period of ten years with a substantial budgetary outlay of Rs 28,840 crore. This decision, taken during a Union Cabinet meeting chaired by Prime Minister Narendra Modi in New Delhi, is designed to bring unserved and underserved regions onto the national air map.
Infrastructure Development and Financial Support
The revamped scheme outlines a comprehensive plan for infrastructure creation and financial sustainability. A major component involves the development of 100 new airports at existing, currently unserved airstrips across the country, with an allocation of Rs 12,159 crore. Furthermore, to cater to the unique geographical challenges of hilly, remote, island, and aspirational districts, the plan includes establishing 200 new helipads. A dedicated fund of Rs 15 crore has been earmarked for the development of each of these helipads.
Addressing a critical challenge faced by airline operators on regional routes, the cabinet has allocated Rs 10,043 crore as Viability Gap Funding (VGF) over the next decade. This financial support is intended to make operations on RCS routes more economically sustainable for airlines, thereby ensuring more reliable and consistent air services for passengers.
Addressing Operational Challenges and Boosting Indigenous Manufacturing
Recognizing the high operational costs and limited revenue at RCS-only aerodromes, the modified scheme introduces crucial operational and management (O&M) support. This support will be provided for three years, capped at Rs 3 crore annually per airport and Rs 90 lakh annually per heliport or water aerodrome. The estimated cost for this support across approximately 441 aerodromes is Rs 2,577 crore.
In a boost to indigenous aerospace manufacturing, the scheme also includes provisions for procuring Indian-made aircraft. It proposes the procurement of two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air.
Minister's Statement on Decade of Progress and Future Vision
Union Aviation Minister Ram Mohan Naidu highlighted the scheme's achievements over the past decade, stating that UDAN has successfully added 663 new routes and 95 new airports, including heliports and water aerodromes. Approximately 1.6 crore passengers have utilized these services, advancing the goal of inclusive and democratized air travel.
"With today’s cabinet approval, another 100 airports and 200 heliports will be added to India’s aviation growth story, with an estimated 4 crore passengers set to benefit," Naidu said. He emphasized that airports act as economic engines, generating employment and contributing to GDP growth in connected regions. The budgetary allocations for Pawan Hans and Alliance Air to procure made-in-India aircraft further underscore the government's commitment to supporting domestic manufacturing within the aviation sector.
The overarching aim of these modifications is to ensure greater viability and long-term sustainability for both regional aerodromes and the airline operators serving them, marking a new chapter in India's regional air connectivity narrative.
