- Why in news
- On 20 October 2026, PIB published a backgrounder as UDAN completes ten years (launched 21 October 2016). It also describes the Modified UDAN scheme launched on 4 July 2026.
- What it is
- UDAN (Ude Desh ka Aam Nagrik) is the Centre's regional air connectivity scheme, begun in 2016. It links unserved and underserved airports by having airlines bid for routes. The Airports Authority of India implements it.
- Launch
- The Regional Connectivity Scheme, branded UDAN, was launched on 21 October 2016 under the National Civil Aviation Policy 2016.
- First flight
- The first UDAN flight ran from Shimla to Delhi in April 2017.
- Modified UDAN outlay and period
- The next phase runs ten years, FY 2026-27 to FY 2035-36, with a total outlay of Rs 28,840 crore.
- Airline support
- Rs 10,043 crore of VGF is for airlines over ten years. Support is for up to five years, tapering from the third year, and route exclusivity is limited to three years.
- Centre-State MoUs
- 21 MoUs were signed between the Government, participating States/UTs and the AAI.
- Implementing agency
- The Airports Authority of India (AAI) is the implementing agency. The 21 MoUs were signed among the Ministry, the States/UTs and AAI.
- Challenge Mode
- States and UTs can nominate airstrips and helipads for development under the next phase through a dedicated portal.
- Four pillars of Modified UDAN
- Affordability for passengers, sustainability of operations, a transparent Challenge Mode framework, and promotion of indigenous manufacturing.
- Route bidding
- Airlines bid for identified UDAN routes, so routes and operators are chosen competitively.
- Achievements so far
- The Minister said UDAN has operationalised 687 routes and 95 aerodromes.
- Targets of Modified UDAN
- The MoS said Modified UDAN aims at 120 new destinations and 4 crore more passengers over the next ten years.
- Outlay and period
- Modified UDAN runs for ten years, FY 2026-27 to FY 2035-36, with an outlay of ₹28,840 crore.
- VGF terms
- Airlines get Viability Gap Funding for up to five years. Tapering starts from the third year. Route exclusivity is limited to three years.
- RCS levy
- UDAN is funded from within the sector by a small levy on selected domestic flights, described as a first-of-its-kind model.
- Indigenous aircraft
- The scheme proposes two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air.
- Launch of Modified UDAN
- The Prime Minister launched Modified UDAN on 4 July 2026 from Jodhpur Airport.
- AOP condition for bidders
- Airlines without an Air Operator Permit (AOP) cannot bid for routes. A failed bidder is barred from the re-bidding.
- Track record
- Since October 2016 UDAN has operationalised 669 routes and connected 95 airports, heliports and water aerodromes, with over 1.66 crore passengers.
- Outlay and approval
- The Union Cabinet approved the Modified UDAN Scheme on 25 March 2026, with about ₹29,000 crore over ten years.
Don’t confuse with UDAN vs Modified UDAN: UDAN (2016) funded VGF mainly for airlines on routes. Modified UDAN (2026) adds aerodrome capex, O&M support, helipads and indigenous aircraft purchase.
Don’t confuse with AAI vs DGCA: AAI builds and manages airports and implements UDAN; DGCA regulates safety and licensing.
Don’t confuse with UDAN vs Challenge Mode: UDAN is the overall scheme with airline route bidding. Challenge Mode is the new route for States/UTs to nominate airstrips and helipads for development.
Don’t confuse with VGF period vs exclusivity: VGF lasts up to five years, with tapering from year three. Route exclusivity is only three years.
Don’t confuse with Scheme period vs component period: The scheme runs ten years. Aerodrome and helipad outlays are over eight years, and VGF over ten.
Don’t confuse with RCS vs UDAN: The Regional Connectivity Scheme is the official name; UDAN is its brand name.
Don’t confuse with Served vs underserved airport: An unserved airport has no scheduled flights. An underserved one has few flights, below the departure, city-pair and passenger thresholds.
Don’t confuse with UDAN vs Viksit UDAN: Viksit UDAN is the name for the Modified UDAN Scheme, the next phase of the same scheme, not a new scheme.
Don’t confuse with Helipads vs aerodromes: The 200 figure is for modern helipads; 100 is for aerodromes from unserved airstrips.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Improves access to air travel for remote and underserved regions, supporting tourism, medical access, trade and jobs.
- Centre-State partnership and indigenous aircraft support (HAL Dhruv, Dornier) tie into Atmanirbhar Bharat.
- Improves air access to remote and unserved regions, supporting tourism, trade and jobs.
- Brings States in as partners in building aviation infrastructure.
- Extends air links to small towns, hilly and island areas, helping balanced regional development.
- Helipads improve access to healthcare and emergency response in difficult terrain.
- Links Tier-II and Tier-III cities to air networks and supports balanced regional development.
- Helps trade and tourism, for example litchi exports from Darbhanga and marble exports from Kishangarh.
- Extends affordable air links to remote and Tier-2 and Tier-3 areas, supporting trade, tourism and jobs.
- Promotes domestic aircraft and helicopters, supporting Atmanirbhar Bharat.
Problems
- Airline viability on thin regional routes depends on subsidy; support is time-bound.
- Hilly terrain in the North-East leaves most identified aerodromes non-operational (12 of 52).
- Routes can become unviable once subsidy or support ends, so operations may not be sustainable.
- Small airports have high recurring costs and thin revenue, so routes may close once support ends.
- Airlines depend on VGF, so long-term commercial viability is uncertain.
- Many routes have stopped after the VGF period ended, so route sustainability is weak.
- Airlines bid beyond their capacity, delaying routes, and low-traffic airports struggle to remain viable.
- Many UDAN routes depend on subsidy and may close once viability gap funding ends.
- Low demand and thin infrastructure at small airports strain airline finances.
Way forward
- Build aerodromes and O&M support so routes stay operational after VGF ends.
- Use State-led nominations through the Challenge Mode Portal and sustain Centre-State coordination.
- Choose locations with real demand and keep the bidding transparent so that routes last.
- Taper support gradually and build demand through local tourism and trade links.
- Prioritise sustainable routes and keep the sector-funded levy working.
- Tapered 5-year VGF, O&M support and slots at metro airports can help routes survive.
- Tie awards to business plans and aircraft availability, and prioritise state-recommended routes.
- Build demand through multimodal links, tourism and cargo to make routes self-sustaining.
- Phase out subsidy as routes mature and monitor route continuity.
Put in your answer
VGF disbursed: Rs 5091.23 crore disbursed as VGF as of 15 October 2026.
Airport growth: Operational airports rose from 74 in 2014 to 166; India is the third-largest domestic aviation market.
UDAN performance data: 687 routes and 95 aerodromes operationalised, about 1.71 crore passengers carried.
Employment impact: Aviation-sector jobs rose from about 3 million in 2014 to nearly 7.7 million, as stated by the Minister.
Example airports: Tezu in Arunachal Pradesh and Purnea in Bihar are cited as airports that were once cut off.
VGF outlay: ₹10,043 crore is proposed towards VGF over ten years.
Record traffic: India recorded its highest monthly domestic air traffic in May, over 1.5 crore passengers.
UDAN performance: 669 routes operationalised and 95 airports, heliports and water aerodromes connected, with 1.66 crore passengers carried since 2016.
- 2024Mains GS3 · Q12Need for expanding regional air connectivity in India; discuss UDAN's achievements.
- 2017Mains GS3 · Q3Examine airport development in India through PPP joint ventures, and the challenges faced.
- 2022Mains GS2 · Q6Gati Shakti needs government-private sector coordination to achieve connectivity; discuss.
- 2003Prelims Q65Which statement about Airports Authority of India and aviation bodies is correct?
- 2026Prelims Q66Which connectivity projects are part of India-ASEAN cooperation?
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statements
Ours, not from a UPSC paper
Consider the following statements:
- 1.Under Modified UDAN, Viability Gap Funding for airlines is available for up to five years, with route exclusivity limited to three years.
- 2.Under Modified UDAN, the Challenge Mode Portal is used by private airlines to nominate airstrips and helipads for development.
- 3.Modified UDAN is to be implemented over ten years, from FY 2026-27 to FY 2035-36.
Which of the statements given above is/are correct?
True or false?
1 of 23
Statements the way Prelims prints them. Say first, then see the fact.
1.The Regional Connectivity Scheme, known as UDAN, was launched in 2016 following the National Civil Aviation Policy 2016.
True. UDAN was launched on 21 October 2016 under the NCAP 2016.
2.The first UDAN flight operated from Shimla to Delhi.
True. The first RCS-UDAN flight was Shimla to Delhi, April 2017.
3.Modified UDAN will run for five years with a total outlay of Rs 28,840 crore.
False. It runs ten years, FY 2026-27 to FY 2035-36.
4.Under Modified UDAN, Viability Gap Funding for airlines is available for up to five years, with route exclusivity limited to three years.
True. VGF up to five years, tapered from year three; exclusivity three years.
5.Under Modified UDAN, 100 airports are to be developed from existing unserved airstrips.
True. 100 airports at about Rs 100 crore each.
6.The Challenge Mode Portal allows private airlines to nominate airstrips and helipads for development.
False. State Governments and UT Administrations nominate the airstrips and helipads.
7.Under UDAN, routes are allotted to airlines through a market-based selection process.
True. UDAN uses market-based selection, fare caps, concessions and VGF.
8.Under Modified UDAN, Operation and Maintenance support for aerodromes is proposed for a period of three years.
True. O&M support is for three years.
9.Under Modified UDAN, airlines receive Viability Gap Funding for up to three years.
False. VGF is for up to five years; route exclusivity is limited to three years.
10.The Modified UDAN scheme proposes to develop 200 modern helipads.
True. 200 modern helipads are proposed.
11.Modified UDAN is to be implemented over five years with an outlay of ₹28,840 crore.
False. It runs for ten years, FY 2026-27 to FY 2035-36.
12.The RCS levy under UDAN is a fee on selected categories of domestic flights, used to fund the scheme from within the aviation sector.
True. The levy on selected domestic flights funds the scheme.
13.The Regional Connectivity Scheme UDAN was launched in October 2016.
True. UDAN was launched in October 2016.
14.Modified UDAN proposes HAL Dornier aircraft for Pawan Hans and HAL Dhruv helicopters for Alliance Air.
False. Dhruv helicopters are for Pawan Hans; Dornier aircraft are for Alliance Air.
15.Under the existing UDAN scheme, Viability Gap Funding to airlines is limited to 3 years.
True. The existing scheme limits VGF to 3 years.
16.Modified UDAN provides VGF for 5 years, with the amount tapering from Year 3 onwards.
True. Year 3 gets 75%, Year 4 50%, Year 5 25% of awarded VGF.
17.Under Modified UDAN, airlines without an Air Operator Permit may still bid for routes to promote new entrants.
False. Airlines without an AOP will not be allowed to bid.
18.Modified UDAN provides for 3-year operation and maintenance support for manpower salary costs at aerodromes developed under RCS.
True. O&M support is for 3 years, up to INR 3.06 crore per year per airport.
19.The UDAN scheme was begun under the National Civil Aviation Policy 2016.
True. The NCAP 2016 announced the regional connectivity scheme.
20.The Modified UDAN Scheme has an approved outlay of about ₹29,000 crore over ten years.
True. About ₹29,000 crore over the next ten years.
21.The scheme promotes the use of indigenous aircraft such as HAL Dhruv and Dornier in underserved regions.
True. HAL Dhruv and Dornier platforms are promoted.
22.UDAN was launched in October 2016.
True. UDAN began in October 2016.
23.Under UDAN, airlines bid for routes and receive viability gap funding.
True. Route allocation is by reverse bidding with VGF support; the release notes continued VGF of ₹10,043 crore.
Written by us from the release, not by UPSC; checked by a second model.
Mains practice
15 marks · 250 words
The Regional Connectivity Scheme, UDAN, has completed ten years, and the Modified UDAN scheme (2026-27 to 2035-36) with an outlay of Rs 28,840 crore has now been launched. Examine the key provisions of the Modified UDAN scheme and discuss the significance of UDAN for regional development. What challenges does regional air connectivity still face?
Worth revising until Prelims 2028: most news questions come within two years of the event.