Udan Scheme Article

Source: The Hindu UPSC Prelims State PCS SSC

The Government of India has revamped the UDAN (Ude Desh ka Aam Nagrik) Scheme with extended subsidy support, a new funding model, and a ₹28,840 crore outlay — aiming to breathe life back into underutilised Tier-2 and Tier-3 air routes across the country.

Background

What Is the UDAN Scheme?

📅 Launched 2016 Under Ministry of Civil Aviation ✈️ Full Form Ude Desh ka

Aam Nagrik Common citizen can fly 🎯 Objective Regional Air

Connectivity Affordable air travel for all 🏙️ Target Cities Tier-2 & Tier-3 Underserved Indian cities

Policy Update

Key Changes in the Revamped UDAN Scheme

1 — Extension of Subsidy Period

Earlier

Viability Gap Funding (VGF) provided for 3 years only

Now

Extended to 5 years of subsidy support per route

Many regional routes became commercially unviable immediately after the 3-year subsidy window ended, forcing airlines to discontinue operations.

2 — Change in Subsidy Funding Mechanism

Earlier

Funded through a levy on airline tickets (passenger burden)

Now

Direct budgetary support from the Central Government

Reduces the financial burden on passengers and improves the scheme’s long-term fiscal sustainability.

3 — Increased Financial Outlay

Earlier Outlay

Limited funding with shorter route viability window

New Outlay

Total allocation of ₹28,840 crore

Strengthen regional connectivity infrastructure and support airlines operating on less profitable but socially essential routes.

Exam Relevance

Important For

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📚 Target Exams UPSC Prelims State PCS SSC CGL / CHSL Aviation Sector GK

Practice Questions

MCQ — Test Your Understanding

Q1 What is the primary objective of the UDAN Scheme?

• A Promote international tourism
• B Improve regional air connectivity
• C Develop metro rail networks
• D Boost cargo exports

Q2 Where is the UDAN scheme primarily implemented?

• A Only metropolitan cities
• B Tier-2 and Tier-3 cities
• C Only rural villages
• D International routes

Q3 What is the revised subsidy duration under the revamped UDAN scheme?

• A 2 years
• B 3 years
• C 5 years
• D 10 years

Q4 What type of funding mechanism is now used for UDAN subsidies?

• A Airline ticket surcharge
• B State government grants
• C Direct budgetary support from the Central Government
• D Private airline investment

Content curated for competitive exam preparation. Source: The Hindu. For educational use only.