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The government has raised the UDAN scheme's allocation by 27 per cent to INR 550 crore for the next financial year, up from INR 434.50 crore, to expand air connectivity in smaller towns and underserved regions. The Civil Aviation Ministry's overall budget has risen slightly to INR 4,699.92 crore, with higher funding for regulators DGCA and BCAS. Customs support at 27 tier II and tier III airports is also covered, while the drone PLI scheme remains unfunded. The initiative focuses on reviving dormant airstrips and making air travel more accessible.
The government has significantly increased the budget for the UDAN regional air connectivity scheme by 27 per cent, raising its allocation to INR 550 crore for the upcoming financial year from INR 434.50 crore in the current fiscal. The additional funds aim to revive airstrips that have limited or no operations and strengthen regional connectivity across smaller towns and remote areas, improving accessibility and affordable air travel options. Advertisement
The Civil Aviation Ministry's total budget has also seen a marginal rise, reaching INR 4,699.92 crore, compared with INR 4,688.03 crore in the revised estimates for the current year. Part of this allocation, INR 47.39 crore, is earmarked for Customs Cost Recovery charges payable to the Airports Authority of India (AAI) and its subsidiary, AAICLAS, to support deployment of customs personnel at 27 airports. These include 15 cargo terminals and 12 passenger terminals, mostly in tier II and tier III cities.
Funding for regulatory bodies has increased as well. The Directorate General of Civil Aviation (DGCA) is set to receive INR 342 crore, while the Bureau of Civil Aviation Security (BCAS) will get INR 114 crore. This reflects the government's emphasis on maintaining regulatory oversight and aviation security as regional connectivity expands.
Despite some industry expectations, the Production Linked Incentive (PLI) scheme for drones and components has not received any budgetary provision, leaving its revival uncertain in the near term.
The UDAN initiative is part of a broader effort to make air travel more inclusive by connecting towns and cities with limited or no airline services. It supports the activation of dormant airstrips, facilitates affordable travel, and contributes to regional economic activity by improving mobility and accessibility in underserved areas.
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