Modified UDAN Scheme

Context: The Union Budget 2025-26 has announced a ‘modified UDAN scheme’ to further improve regional connectivity.

Relevance of the topic:

Prelims: Scheme-specific questions on UDAN scheme.

Mains: Detailed question on aviation sector and UDAN scheme.

About Modified UDAN Scheme

The modified UDAN scheme plans to connect 120 additional destinations across the country, thereby broadening the reach of affordable air travel.
It aims to facilitate air travel for an additional 4 crore passengers to benefit individuals from regional connectivity.
The government will support the establishment of new greenfield airports, particularly in states like Bihar.
The regional connectivity scheme will also support helipads and smaller airports in hilly, aspirational, and North-eastern districts.

The UDAN scheme (Regional Connectivity Scheme) was launched in 2017.
Initiative of: Ministry of Civil Aviation
Aim:
- To enhance the aviation infrastructure and connectivity in India.
- To make flights accessible and affordable in tier-2 and tier-3 towns.
Key features of the scheme:
- Affordable Airfare: Capped airfare at ₹2,500 per hour of flight on select regional routes to make air travel accessible.
- Regional Connectivity: Focuses on connecting underserved and unserved airports in Tier 2 and Tier 3 cities.
- Viability Gap Funding: Financial support from the government to airlines for operating regional routes, ensuring affordability.
- Public-Private Partnership: Encourages private airlines to participate in regional aviation through incentives.
- Boost to Tourism & Economy: Enhances accessibility to remote regions, fostering tourism and economic development.
- No Airport Charges: Airports under UDAN are exempted from landing, parking, and other charges to reduce operational costs.
- Intermodal Connectivity: Integrates regional air travel with rail, road, and waterways for seamless transport.
- Phased Expansion: Implemented in multiple phases, with each phase covering new routes and destinations.

Enhanced regional connectivity with the development of greenfield airports in the remorse regions Eg; Pakyong Airport (Sikkim) became operational under UDAN, providing direct air connectivity to the state.
Enhancing passenger traffic in the flights by making them affordable, with capped pricing.
Job creation: Development of airports and construction of greenfield airports will lead to the job creation and development of ancillary industries in the region.
Boost tourism: E.g., Kishangarh Airport (Rajasthan) near Ajmer has boosted religious tourism at Ajmer Sharif Dargah and Pushkar.
Development of remote regions: UDAN has brought air connectivity to difficult terrains like the Northeast and the Andaman & Nicobar Islands. Eg; Tezu Airport (Arunachal Pradesh) now provides better access to the region.
Support to the aviation sector: Small airlines benefit from Viability Gap Funding (VGF), making regional routes profitable. Eg; Alliance Air & Flybig Airlines have expanded their operations due to government support.
Reducing travel time by promoting small flights with quick operations. Eg; Dibrugarh to Pasighat (Arunachal Pradesh) now takes less than an hour by air, compared to a 10-hour road journey.
Strengthening national security by development of the new airports at the border and remote regions. Eg; Kargil Airport (Ladakh) is being developed under UDAN to strengthen air access in sensitive regions.

Financial Viability: Many airlines struggle due to low profitability (E.g., Air Odisha, Air Deccan shut down).
High Operating Costs: Rising fuel prices make regional flights expensive (E.g., SpiceJet withdrew from UDAN routes).
Airline Fleet Shortage: Not enough small aircraft (E.g., Flybig Airlines delayed expansion).
Infrastructure Gaps: Many airports lack night landing, ATC, or maintenance.
Low Passenger Demand: Some routes have poor occupancy (E.g., Jamshedpur-Kolkata flights discontinued).
Weather & Geography: Remote areas face frequent disruptions.

Also Read: Falling of Airline sector in India