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Regional air connectivity in India is set to receive a significant boost with the revised Ude Desh Ka Aam Naagrik (UDAN) scheme, as revealed by Civil Aviation Minister Shri Ram Mohan Naidu earlier this week. Announced as part of the Budget 2025-26 proposals, the modified scheme aims to connect 120 new destinations and ferry over four crore passengers over the next decade. The plan includes expanding infrastructure by developing new airports, water aerodromes, and heliports while supporting airlines with Viability Gap Funding (VGF). The proposal, which is awaiting approval from the Union Cabinet, is expected to be rolled out in the latter half of FY26.
Regional air connectivity in India is set to strengthen considerably with the introduction of a revised version of the Ude Desh Ka Aam Naagrik (UDAN) scheme, as shared by Civil Aviation Minister Shri Ram Mohan Naidu earlier this week. Advertisement
The proposal for the modified UDAN scheme was unveiled in the Budget 2025-26. Under this updated plan, the government envisions linking 120 new destinations and transporting over four crore passengers within the next ten years.
The revised UDAN scheme represented a major initiative by the Centre to continue advancing the civil aviation sector across the country. The focus would be on operationalising and constructing more airports, water aerodromes, and helipads, in addition to assisting airlines in reaching remote areas of India that have historically lacked air connectivity.
The minister remarked that the country had already witnessed the positive impacts of the scheme nationwide. Since its inception, the UDAN scheme has enabled the travel of approximately 1.5 crore passengers across more than 2.8 lakh flights.
The scheme has so far operationalised 619 routes, which include helicopter routes. Furthermore, the number of operational airports in the country has doubled, increasing from 74 in 2014 to over 157 as of 2024.
Presently, the market-driven model of the initial UDAN scheme allows airlines to evaluate demand on specific routes and submit their proposals during bidding rounds. The scheme also incentivises the development of new airports as well as the refurbishment and expansion of existing aviation facilities.
Additionally, airlines are being supported to connect underserved regions through Viability Gap Funding (VGF) and a range of concessions provided by airport operators, as well as the Central and State governments.
It is worth noting that the proposal for the modified scheme is scheduled for review by the Expenditure Finance Committee (EFC). Once approved, the final policy draft will be presented to the Union Cabinet for its sanction. Consequently, the government anticipates launching the updated version of the UDAN scheme in the latter half of FY26.
The modified UDAN scheme is expected to serve as a catalyst in enhancing regional air connectivity across India, with a vision of reaching previously inaccessible locations through an expanded aviation network. The successful rollout of the new version in FY26 could mark a transformative phase in the Indian aviation sector, making air travel more inclusive and accessible to a wider population.
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