Union Cabinet Greenlights Major Overhaul of UDAN Regional Air Connectivity Scheme
The Union Cabinet has given its formal approval to a significantly modified version of the UDAN (Ude Desh ka Aam Nagrik) scheme, marking a substantial push to strengthen regional air connectivity across India through comprehensive infrastructure development and enhanced financial mechanisms.
Massive Infrastructure Expansion with 100 New Airports
Under the revamped programme, the government plans to develop 100 new airports in challenge mode, with an estimated average cost of Rs 100 crore per airport. This ambitious component has received a substantial budgetary support of Rs 12,159 crore specifically aimed at improving aviation connectivity in remote, underserved, and economically disadvantaged regions of the country.
Enhanced Helipad Network for Difficult Terrains
The modified scheme also proposes the development of 200 modern helipads, with particular emphasis on improving accessibility in challenging geographical areas. These include:
- The Himalayan region
- North-Eastern states
- Island territories
- Aspirational districts identified for special development
A dedicated budgetary allocation of Rs 3,661 crore has been earmarked specifically for helipad construction and associated infrastructure development.
Financial Support Mechanisms for Sustainable Operations
The government has introduced several financial support measures to ensure the long-term sustainability of regional air routes:
- Viability Gap Funding (VGF): Airlines operating under the regional connectivity scheme will receive VGF support ranging from 80% to 90%, which will be gradually tapered over a five-year period. This component has an overall budgetary outlay of Rs 10,043 crore.
- Operation and Maintenance Support: Recognizing the higher operating costs in low-traffic regions, the Cabinet has approved O&M support for RCS aerodromes for three years, with an annual ceiling of Rs 3 crore per airport and Rs 90 lakh per heliport. This is backed by a budgetary allocation of Rs 2,577 crore.
- Domestic Aviation Manufacturing: The scheme includes support for the acquisition of Made-in-India aircraft, backed by budgetary assistance of Rs 400 crore, with the objective of strengthening domestic aviation manufacturing capabilities and promoting self-reliance in the sector.
Comprehensive Economic and Social Objectives
The government has stated that the updated UDAN scheme aims to achieve multiple strategic objectives:
- Deepening regional connectivity across all parts of India
- Improving accessibility in difficult terrains and geographically isolated regions
- Supporting balanced economic development by integrating smaller towns and remote regions into the national aviation network
- Creating employment opportunities in aviation and related sectors
- Promoting tourism and business travel to underserved destinations
The total budgetary commitment across all components of the modified UDAN scheme amounts to approximately Rs 28,840 crore, representing one of the most significant investments in regional aviation infrastructure in recent years. This comprehensive approach addresses both infrastructure development and operational sustainability, creating a more robust framework for regional air connectivity that can serve as a catalyst for economic growth in India's most remote and underserved regions.
