UDAN Scheme

Latest News (2025)

  • Revamped UDAN Initiative: Plans to add 120 new destinations and enable affordable air travel for 4 crore passengers over the next decade.

  • Krishi UDAN Expansion: Covers 58 airports (25 priority, 33 others) to boost agri-logistics, especially in Northeast and tribal regions.

  • Seaplane Operations: Guidelines released (August 2024) for 50+ water bodies to enhance multimodal connectivity.

  • Airport Infrastructure: Commitment to develop 50 new airports in 5 years, including greenfield airports in Bihar and expansion of Patna Airport.

Overview

  • Launch: 21 October 2016; first flight on Shimla–Delhi route (27 April 2017).

  • Objective: Democratize air travel, focusing on Tier-2/3 cities and remote regions.

  • Key Achievements (2016–2025):

    • 625 operational routes connecting 90 airports (15 heliports, 2 water aerodromes).

    • 1.49 crore passengers benefited; 3 lakh flights operated.

    • Airport network expanded from 74 (2014) to 159 (2024).

    • ₹4,023.37 crore disbursed as Viability Gap Funding (VGF).

Objectives

  • Enhance regional air connectivity to unserved/underserved airports.

  • Ensure affordable airfares through subsidies and fare caps.

  • Promote tourism, healthcare access, and regional trade.

  • Generate employment in aviation and allied sectors.

  • Strengthen socio-economic integration between rural and urban areas.


Key Components

  1. Viability Gap Funding (VGF):

    • Financial support to airlines to offset operational costs.

  2. Airfare Cap:

    • Capped fares (e.g., ₹2,500 per hour for 50% seats on RCS flights).

  3. Stakeholder Incentives:

    • Central Govt.: 2% excise duty on ATF for 3 years.

    • State Govt.: 1% VAT on ATF for 10 years.

    • Airports: Waived landing/parking charges and reduced TNLC/RNFC fees.


Evolution of UDAN

Version Key Features
UDAN 1.0 Launched 128 routes, 70 airports (2017).
UDAN 2.0 Expanded to 73 underserved airports; included helipads (2018).
UDAN 3.0 Added tourism routes, seaplane operations, and Northeast focus (2019).
UDAN 5.0 Removed 600 km route cap; faster implementation (2023).
UDAN 5.1 Focused on helicopter connectivity; increased VGF (2023).
UDAN 5.5 Seaplane operations and rebidding for discontinued routes (2024).

Innovations & Initiatives

  • UDAN Yatri Cafes: Affordable food outlets at airports (e.g., Kolkata, Chennai) with items like ₹10 tea.

  • Krishi UDAN: Supports farmers with air logistics for perishables; covers 58 airports.

  • Seaplane Operations: Connects water aerodromes (e.g., Guwahati Riverfront, Sabarmati River).

Future Plans

  • 120 New Destinations: Targeting remote, hilly, and aspirational districts.

  • 50 New Airports: Including greenfield projects in Bihar and Bihta brownfield expansion.

  • Helipad Expansion: Strengthening last-mile connectivity in Northeast and islands.

Key Takeaways

  • UDAN transformed India’s aviation landscape, making air travel accessible to 1.49 crore passengers.

  • Infrastructure growth (159 airports) and regional economic development are core achievements.

  • Future initiatives like seaplanesKrishi UDAN, and 120 new destinations aim to deepen inclusivity.


FAQs

  1. When was UDAN launched?

    • 21 October 2016; first flight on 27 April 2017.

  2. What is Viability Gap Funding (VGF)?

    • Financial support to airlines to ensure affordable fares; ₹4,023.37 crore disbursed by 2025.

  3. How many airports are operational under UDAN?

    • 90 airports, including 15 heliports and 2 water aerodromes.

  4. What is Krishi UDAN?

    • A scheme to boost air logistics for agricultural produce, covering 58 airports.

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