UDAN Scheme (Ude Desh ka Aam Nagrik)

✦Key Features

• 625 routes operational; 90 airports connected (incl. 15 heliports, 2 water aerodromes) as of Apr 2025
• 1.49 crore+ passengers benefited; India's airport count grew 74 (2014) to 159 (2024)
• Viability Gap Funding (VGF): ₹4,023.37 crore disbursed; 80% Centre + 20% State
• Capped fares: ₹2,500 for 1-hour journey (50% seats per route)
• Modified UDAN (Budget 2025-26): 120 new destinations; 4 crore additional passengers over 10 years
• Budget FY2025-26: ₹540 crore; scheme extended for next 10 years
• Focus: Tier 2/3 cities, J&K, Ladakh, NE India, coastal areas, aspirational areas

✓Eligibility Criteria

• Airline operators who possess a valid Air Operator Certificate (AOC) issued by the DGCA.
• State Governments and Union Territory administrations that agree to provide concessions and land for airport development.
• Airport operators and the Airports Authority of India (AAI) responsible for upgrading regional infrastructure.
• Participating airlines must commit to flying on underserved or unserved regional routes as specified by the Ministry.

★Benefits

• Capped airfares for 50% of the seats on regional routes to make flying affordable for the common citizen.
• Viability Gap Funding (VGF) provided to airline operators to offset the financial losses of operating on low-traffic routes.
• Revival and modernization of unserved and underserved airports to enhance regional connectivity.
• Systemic outcomes including boosted local tourism and accelerated economic growth in Tier-2 and Tier-3 cities.

▶Application Process

• Respond to the Notice Inviting Tenders (NIT) issued by the Ministry of Civil Aviation for specific regional routes.
• Submit technical and financial bids through the e-tendering portal specifying the required Viability Gap Funding (VGF).
• Sign a three-way Memorandum of Understanding (MoU) between the Centre, the respective State Government, and the Operator.
• Commence flight operations on the allotted route within the stipulated timeline mentioned in the agreement.

₹ Budget Allocation

4500

Funding Ratio (Centre:State): VGF shared between Centre and State (80:20 for general states; 90:10 for North East/Hilly)

Historical Context

Launched in 2016 to fulfill the National Civil Aviation Policy (NCAP) goal of making flying affordable for the masses.