10 years of UDAN: Scheme facilitates 1.72 crore passengers; government spends ₹5,091 crore

The scheme aims to make air travel more accessible by encouraging airlines to operate routes that may not initially be commercially viable.

India’s regional air connectivity scheme, UDAN, has enabled 1.72 crore passengers to travel by air and operationalised 687 routes across the country since its launch in October 2016, according to a Press Information Bureau (PIB) backgrounder released on Tuesday ahead of the scheme’s tenth anniversary.

Titled Wings of Change: 10 Years of Redefining Regional Air Connectivity through UDAN, the backgrounder highlights the expansion of regional aviation and the government’s efforts to improve air connectivity to smaller cities and remote areas through financial assistance and policy support.

UDAN operates 687 routes, facilitates 1.72 crore passengers

Since its launch, the UDAN scheme has facilitated more than 3.68 lakh flights across the country, according to the PIB release. It has also helped operationalise 95 aerodromes, including 17 heliports and two water aerodromes, expanding access to air travel in underserved and remote regions.

The scheme aims to make air travel more accessible by encouraging airlines to operate routes that may not initially be commercially viable.

Government disburses ₹5,091 crore in financial support

The government has disbursed ₹5,091.23 crore in Viability Gap Funding (VGF) as of October 15 to support airline operations on regional routes, the backgrounder stated.

UDAN uses a combination of market-based selection, capped airfares, concessions and VGF to encourage airlines to serve routes with limited commercial viability.

However, the continued need for financial assistance underscores the challenges of making regional aviation financially sustainable. Airlines operating in smaller markets may face constraints such as limited passenger demand and lower airport revenues, making it difficult to maintain services without government support.

Modified UDAN launched with ₹28,840 crore outlay

To address these challenges and strengthen regional air connectivity, the government launched Modified UDAN on July 4.

The programme has an approved outlay of ₹28,840 crore over ten years, covering the financial years 2026-27 to 2035-36.

The initiative is aimed at continuing efforts to improve regional connectivity and support aviation infrastructure, with a focus on making air travel more accessible across the country.

"The Modified UDAN Scheme introduces targeted measures to support sustainable growth and long-term viability of regional aviation," the release said.

Under the next phase, ₹10,043 crore has been allocated for supporting airline operations, while 100 airports are planned to be developed from existing unserved airstrips. The scheme also envisages developing 200 modern helipads and providing operational support to approximately 441 aerodromes.

In the North-Eastern states, 90 priority regional routes and 12 aerodromes have been operationalised under UDAN.

Looking ahead, the government aims to strengthen regional air connectivity through infrastructure development, financial support and greater coordination with states.

"These measures seek to address the infrastructure and viability challenges of regional air travel," the release highlighted.

The UDAN scheme was launched on October 21, 2016, to make air travel affordable and improve connectivity to unserved and underserved regions.