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The Union Government has set a target of 20 lakh passengers traveling under the Udan scheme by FY26, backed by INR 540 crore in funding for airport revivals and viability gap funding. The Civil Aviation Ministry aims to revive 13 airports, launch 100 new routes, and operate 40,000 flights under the scheme, focusing on hilly areas and the North-East. Since its 2017 launch, Udan has carried 1.5 crore passengers across 619 routes, connecting 88 airports. The expanded version plans to add 120 new destinations over the next decade.
The Union Government has set ambitious targets for the expansion of the Udan scheme, with projections for over 20 lakh passengers traveling on new Udan flights by FY26. This expansion is expected to be supported by upgrades to airports and the introduction of new routes. The Finance Ministry has allocated INR 540 crore in the FY26 Budget to revive airports and provide viability gap funding under the Regional Connectivity Scheme (RCS), which will enhance regional air connectivity. Advertisement
According to the outcome Budget document, the Civil Aviation Ministry aims to revive 13 airports, heliports, and water aerodromes in FY26. This includes four facilities in the North-Eastern States. In addition to this, the Ministry is targeting the launch of 100 new RCS routes and 40,000 flights under the scheme in FY26. These efforts are expected to significantly improve air connectivity in the North-East, where four new destinations are anticipated to be linked with air services.
The targets outlined in the Budget reflect the Ministry's strong commitment to expanding air travel across India. Prime Minister Narendra Modi inaugurated the first Udan flight between Shimla and Delhi in April 2017, and since then, the scheme has had a substantial impact. Over the past seven years, Udan routes have carried 1.5 crore passengers, connecting 88 airports and operationalising 619 routes. In a bid to further strengthen regional connectivity, Finance Minister Nirmala Sitharaman recently announced a modified version of the Udan scheme, with plans to add 120 new destinations over the next decade.
A key focus of the revised scheme is on improving connectivity to hilly areas and the North-East. Sitharaman stated that the scheme is expected to carry over 4 crore passengers in the next 10 years. Under the ongoing Udan scheme, selected airlines receive viability gap funding for a route for up to three years, during which they are required to offer concessional fares to passengers. However, there have been cases where airlines have closed routes or ceased operations within this three-year period. Industry experts suggest that the process for selecting operators could be made more stringent, with a more robust evaluation system in place to ensure the viability of routes before they are awarded.
The expansion of the Udan scheme has significant economic implications. Improved air connectivity in remote regions can open up new opportunities for tourism, business, and trade. By making these regions more accessible, the scheme could help stimulate local economies and create jobs, contributing to the growth of small towns and cities.
As the government increases its focus on regional connectivity, sustainability must also be a priority. The aviation sector is often criticised for its environmental impact, and expanding air travel could exacerbate this issue. However, there is potential to address this concern by incorporating eco-friendly aircraft, implementing carbon offset programs, and promoting greener airports, which could ensure that the Udan scheme aligns with India's climate goals.
A strong collaboration between the government and private sector players is essential to the success of the Udan scheme. By bringing in private investment and expertise, the scheme can scale more effectively. Partnerships with airlines, airport operators, and infrastructure developers will also play a vital role in ensuring that the programme remains financially viable and capable of meeting long-term goals.
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