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[BUSINESS] · India · 2 sources

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India's UDAN scheme marks 10 years with expanded regional air connectivity

The Regional Connectivity Scheme (RCS), known as UDAN (Ude Desh ka Aam Nagrik), has completed 10 years of operation since its launch on October 21, 2016. The initiative has facilitated travel for over 1.72 crore passengers through 687 operationalized regional air routes across India.

To support the next decade of growth, the government is preparing a modified UDAN scheme with an outlay of ₹28,840 crore. This phase aims to add 120 new destinations and accommodate 4 crore more passengers. Key objectives include strengthening aviation infrastructure, improving the sustainability of regional services, and supporting indigenous aircraft development.

Financial allocations for the upcoming phase include ₹12,159 crore to develop 100 airports from existing unserved airstrips and ₹3,661 crore for 200 modern helipads. The government has also disbursed over ₹5,000 crore in Viability Gap Funding (VGF) to maintain commercial viability for airlines on regional routes. The expansion will focus heavily on remote, hilly, and aspirational districts, particularly in the North Eastern region.

Entities

Airports Authority of India · Alliance Air · HAL · India · Ministry of Civil Aviation