About
- India, being one of the fastest-growing aviation markets in the world, has made significant efforts to ensure regional connectivity and affordability of air travel.
- The UDAN (Ude Desh Ka Aam Nagrik) scheme, launched in 2016, is a flagship initiative under the Regional Connectivity Scheme (RCS) by the Ministry of Civil Aviation to make flying accessible and affordable for the common man while enhancing regional connectivity.
Budget Allocation 2025
- Udan has enabled 1.4 crore middle class people to meet their aspirations for speedier travel, said the finance minister.
- For FY25, the budgetary allocation for the Ministry of Civil Aviation was reduced to Rs 2,357.14 crore, down from Rs 2,922.12 crore in the revised budgetary allocation for FY24.4 days ago
Objectives of UDAN
- The UDAN scheme was introduced with the following objectives:
- Enhancing regional connectivity by operationalizing unserved and underserved airports.
- Making air travel affordable by providing subsidies and capping airfares for certain routes.
- Boosting economic development in remote areas by improving air transport infrastructure.
- Encouraging private participation in aviation through the Viability Gap Funding (VGF) mechanism.
How UDAN Works?
- The scheme follows a Public-Private Partnership (PPP) model, where airlines bid for routes, and the government provides financial incentives to keep fares low.
Key Features of UDAN:
- Affordable Airfares:
- Capped airfare at ₹2,500 per hour of flight for regional routes.
- The government provides Viability Gap Funding (VGF) to airlines to cover losses.
- Development of Airports & Airstrips:
- Operationalization of unserved/underused airports.
- Infrastructure improvements like runways, terminals, and air traffic control.
- Subsidies & Incentives:
- 50% of VGF is provided by the Central Government, and 50% by State Governments.
- Tax reductions on Aviation Turbine Fuel (ATF) to reduce operational costs.
- Exclusive Rights & Security:
- Airlines awarded routes under UDAN enjoy a 3-year exclusivity on those routes.
- Reduced airport charges for UDAN flights.
Phases of UDAN Scheme
Since its launch, UDAN has progressed through multiple phases, each expanding coverage and introducing new routes.
- UDAN 1.0 (2017)
- First phase of bidding with 128 routes awarded to five airlines.
- Five airports revived: Shimla, Nanded, Kadapa, Bhatinda, and Puducherry.
- UDAN 2.0 (2018)
- More routes and helipads included to improve connectivity to hilly and remote areas.
- 73 underserved airports and 31 helipads were selected for development.
- UDAN 3.0 (2019)
- Focused on tourism routes and water aerodromes (e.g., seaplane services).
- Routes connecting Lakshadweep and Andaman & Nicobar Islands were introduced.
- UDAN 4.0 (2020)
- Northeast, tribal, and hilly areas were given priority.
- Special incentives for airlines operating in Jammu & Kashmir, Ladakh, and Northeast states.
- UDAN 5.0 (2023-Present)
- Focus on longer routes (up to 600 km) and improving airline sustainability.
- Revised financial support framework to attract more airlines.
Impact of UDAN Scheme
- Over 490 routes awarded, connecting 70+ underserved and unserved airports.
- Reduction in airfare for regional routes, benefiting middle-class travelers.
- Boost to tourism, especially in states like Himachal Pradesh, Uttarakhand, and the Northeast.
- Economic growth by increasing trade and employment in remote regions.
Challenges & Roadblocks
- Financial Viability
- Some airlines struggle to sustain operations on certain routes.
- Infrastructure Gaps
- Several small airports lack modern facilities and require upgrades.
- Operational Delays
- Slow execution of airport development projects.
- Low Passenger Load Factor (PLF)
- Some routes witness fewer passengers, making them financially unsustainable.
Future Prospects of UDAN
- Expansion of air connectivity to more tier-2 and tier-3 cities.
- Strengthening of infrastructure at smaller airports to handle increasing air traffic.
- Integration of helicopter services to improve last-mile connectivity.
- Introduction of new technologies like electric aircraft for cost-efficient operations.
Conclusion
- The UDAN scheme has revolutionized regional air connectivity in India by making air travel more affordable and accessible.
- While challenges persist, continuous government support and private sector involvement can ensure the long-term success of the initiative.
- As the aviation sector grows, UDAN is set to play a crucial role in India’s economic and infrastructural development.
