The cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the launch and implementation of the Regional Connectivity Scheme (RCS)–Modified Ude Desh ka Aam Naagrik (UDAN) for 10 years, with a total outlay of ₹28,840 crore backed by government budgetary support. The cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the launch and implementation of the Regional Connectivity Scheme (RCS)–Modified Ude Desh ka Aam Naagrik (UDAN) for 10 years. (PMO)
Under the scheme, which will be in place from financial year (FY) 2026–27 to FY 2035–36, the government will develop 100 airports/airstrips. “Under the Modified UDAN Scheme, it is proposed to develop 100 airports from existing unserved airstrips to enhance regional connectivity, in line with the Viksit Bharat 2047 vision of infrastructure expansion and transforming India into a globally competitive aviation ecosystem, with a total outlay of ₹12,159 crore over the next eight years,” a statement issued by the government read.
“It will be a boost to economic growth, trade and tourism in tier-2 and tier-3 cities, support affordable air travel for common citizens, (help in) improved emergency response and healthcare access in remote and hilly regions, greater viability and sustainability for regional aerodromes and airline operators, promotion of the indigenous aerospace sector under Atmanirbhar Bharat and progress towards the Viksit Bharat 2047 goal,” the statement further added.
The first UDAN scheme (UDAN 1.0) was launched in October 2016 and took off on April 27, 2017, with the objective of making air travel affordable and strengthening connectivity to tier-2 and tier-3 cities. UDAN 2.0 was launched in 2018, UDAN 3.0 in 2019, and UDAN 4.0 in 2020. A series of UDAN 5 was launched starting April 2023. Thereafter, UDAN 5.1 was launched in May 2023, UDAN 5.2 in July the same year, UDAN 5.3 in January 2024, UDAN 5.4 in August 2024, and UDAN 5.5 was launched in February last year.
In over nine years of implementation, 663 routes were operationalised across 95 airports, heliports and water aerodromes as of February 28 this year. So far, more than 3.41 lakh flights were operated, carrying 162.47 lakh passengers.
The key components of the modified scheme, announced on Wednesday, include the development of aerodromes, their operations and maintenance (O&M), development of modern helipads, and viability gap funding (VGF).
Speaking on the maintenance of aerodromes, the government said, “Given the high recurring O&M costs and limited revenue streams for RCS-only aerodromes, the scheme proposes to provide O&M support for three years capped at ₹3.06 crore per annum per airport and ₹0.90 crore per annum per heliport/water aerodrome, estimated at ₹2,577 crore for around 441 aerodromes.”
The government also proposed to develop 200 modern helipads to address connectivity issues in hilly regions.
“To address connectivity challenges in hilly, remote, island and aspirational regions, the scheme proposes developing 200 modern helipads at ₹15 crore each, amounting to a total requirement of ₹3,661 crore over the next eight years (inflation-adjusted), focused on priority and aspirational districts to improve last-mile connectivity and emergency response,” the government said.
The government said that under the RCS, airline operators receive financial support in the form of VGF for operating awarded routes. “Recognising the need for longer market development, VGF support to airline operators is proposed amounting to ₹10,043 crore over 10 years,” it said.
To address the shortage of small fixed-wing aircraft and helicopters required for operations in remote and difficult terrains, and to advance the Atmanirbhar Bharat vision, the government proposed procuring two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air.
To be sure, since the inception of the UDAN scheme, 925 valid RCS routes have been awarded, out of which 663 routes have been operationalised as of February this year.
As per the latest government data, so far, 327 routes have been discontinued owing to a variety of factors such as disruption caused by the COVID-19 pandemic, aircraft shortages, supply chain issues, aircraft maintenance, airport/runway maintenance, and low passenger demand on some routes.
In order to address route sustainability issues and further enhance regional connectivity, the government has announced the Modified UDAN Scheme to connect 120 new destinations and cater to 4 crore passengers over the next 10 years. A total of ₹4,593.28 crore has been disbursed as VGF to selected airlines since inception.
Information and Broadcasting (I&B) minister Ashwini Vaishnaw said that under the UDAN scheme, out of the 95 aerodromes that were operationalised, 15 were temporarily shut.
“The aerodromes that couldn’t be covered in the earlier UDAN scheme will be covered in Modified UDAN. Priority will be given to disconnected hilly areas and also to those on challenge mode,” he said.