UDAN Scheme Completes 8 Years (2017–2025)

May 1, 2025

The Ude Desh ka Aam Nagrik (UDAN) scheme, launched by the Government of India on 21 October 2016, has completed eight years since its first flight operated between Shimla and Delhi on 27 April 2017. Designed to democratize air travel, UDAN has significantly expanded regional connectivity, particularly to Tier-2 and Tier-3 cities.

Key Objectives and Implementation

Implemented by: Ministry of Civil Aviation
Goal: Affordable air travel for the common citizen, boost regional connectivity.
Conceptualized under: National Civil Aviation Policy (NCAP) 2016 with a 10-year vision.
Operates on a market-driven model with financial incentives like Viability Gap Funding (VGF) and fare caps.

Milestones and Impact (as of 2025)

Operational Routes: 625 UDAN routes connecting 90 airports (including 2 water aerodromes and 15 heliports).
Passenger Reach: Over 1.49 crore passengers have flown under UDAN’s affordable regional air services.
Airport Network Expansion: India’s airports grew from 74 in 2014 to 159 in 2024—more than doubling in a decade.
Viability Gap Funding: ₹4,023.37 crore disbursed to airlines to bridge cost gaps and ensure affordable fares.
Economic and Social Benefits: Strengthened regional tourism, improved healthcare access, and catalyzed trade in underserved areas.

Scheme Components

Viability Gap Funding (VGF): Direct financial support to airlines to maintain capped fares on regional routes.
Airfare Cap: Maximum fare limits to ensure flights remain affordable
Collaborative Governance: Joint implementation by the Centre, State Governments, Airports Authority of India (AAI), and private airport operators.

Stakeholder Incentives

Airlines:

Financial support via VGF.
Exemptions/waivers:
- No landing & parking charges at RCS airports.
- Exemption from Terminal Navigation Landing Charges (TNLC).
- Discounted Route Navigation & Facilitation Charges (RNFC).

Central Government:

Excise duty capped at 2% on Aviation Turbine Fuel (ATF) for 3 years at RCS airports.
Encourages code-sharing agreements to expand routes.

State Governments:

VAT on ATF reduced to 1% or less for 10 years at RCS airports.
Provide security, fire, and utility services at concessional rates.

Evolution of Scheme

Policy Framework: Conceptualized under the National Civil Aviation Policy (NCAP) 2016 with a 10-year horizon, operating on a market-driven model supplemented by financial incentives.

Phase	Year	Highlights
UDAN 1.0	2017	128 routes awarded; 70 airports connected; 36 new airports operationalized
UDAN 2.0	2018	Added 73 underserved/unserved airports; included helipads
UDAN 3.0	2019	Focus on tourism-specific routes; introduced seaplane operations; focus on Northeast
UDAN 4.0	2020	Targeted hilly regions, Northeast, island territories; enhanced helicopter & seaplane connectivity

Key Innovations and Road Ahead

UDAN Yatri Cafes: Affordable food courts launched at Kolkata and Chennai airports to enhance passenger experience.
Seaplane Operations: Guidelines released on 22 August 2024 for safety, security, and viability; UDAN Round 5.5 solicits bids for over 50 water bodies nationwide.
Revamped UDAN: Plans to add 120 new destinations and serve an additional 4 crore passengers over the next decade, emphasizing remote, hilly, and aspirational districts, especially in the Northeast.
Krishi UDAN Scheme: Multi-ministry initiative facilitating air logistics for farmers, covering 58 airports (25 priority, 33 others), with a focus on Northeast, hilly, and tribal regions.
Airport Infrastructure Development: Commitment to develop 50 new airports in five years, including greenfield airports in Bihar, expansion of Patna Airport, and a brownfield airport at Bihta.
Revamped UDAN scheme: aims to add 120 new destinations and enable 4 crore more passengers to fly over the next decade.

Significance of UDAN

Democratized air travel in India.
Created economic opportunities in smaller cities.
Catalyzed infrastructure growth in underserved regions.
Enhanced regional tourism, medical access, business connectivity.