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UDAN Scheme (Ude Desh ka Aam Nagrik) — Govt Scheme for UPSC | Vaidra
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UDAN Scheme (Ude Desh ka Aam Nagrik)

Ministry of Civil AviationactiveInfrastructureLaunched: 2016-10-21

About the Scheme

UDAN (Ude Desh ka Aam Nagrik) makes air travel affordable and connects underserved airports. Launched Oct 21, 2016. First flight: Shimla-Delhi, April 27, 2017. As of Apr 2025: 625 routes; 90 airports (incl. 15 heliports, 2 water aerodromes); 1.49 crore passengers. Modified UDAN in Budget 2025-26: 120 new destinations, 4 crore more passengers over 10 years. VGF disbursed: ₹4,023 crore.

Target Beneficiaries: 1.49 crore passengers benefited; Tier 2/3 cities; NE, hilly, island, coastal regions

Official Website →

✦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)

Exam Relevance

GS Paper: GS3

Prelims Relevance8%
Mains Relevance8%

Syllabus Tags

AviationInfrastructureConnectivityRegional DevelopmentGS3

Historical Context

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

Exclusion Criteria

  • Routes that do not fall under the Regional Connectivity Scheme (RCS)
  • Airlines not meeting technical safety standards set by DGCA

Sub-Schemes

Krishi UDAN

Focused on connecting North Eastern states and hilly regions.

UDAN Seaplane

Connecting remote locations via water aerodromes.

Challenges

  • Financial viability of regional airlines
  • High cost of Aviation Turbine Fuel (ATF)
  • Under-utilization of certain operationalized airports
  • Shortage of pilots for regional aircraft types

Reforms & Recommendations

  • Reducing VAT on ATF by more states
  • Developing 'Low-Cost Airports' with minimal frills
  • Encouraging the leasing of regional aircraft within India (GIFT City)

Performance Statistics

Metric

625

Source: Ministry of Civil Aviation

Metric

1.4 Crore

Source: PIB

Critical Analysis

UDAN has successfully democratized Indian skies by bringing first-time flyers from Tier-2 and Tier-3 cities into the aviation network. The Viability Gap Funding (VGF) model is an innovative use of a market-based mechanism to cross-subsidize regional routes. However, the scheme faces 'sustainability stress' once the 3-year VGF support ends. Many airlines, especially smaller regional ones, have struggled with high ATF (Aviation Turbine Fuel) prices and maintenance costs, leading to the suspension of several routes. The infrastructure at some unserved airports also remains sub-par for all-weather operations.

SDG Linkages

SDG 9 (Industry, Innovation and Infrastructure)SDG 11 (Sustainable Cities and Communities)SDG 8 (Decent Work and Economic Growth)

Constitutional Backing

Entry 29, List I (Airways; aircraft and air navigation)

Technology Used

Air Traffic Management (ATM)Digital Sky PlatformAdvanced Landing Systems (ALS) at regional airports

Success Stories

Pakyong Airport Connectivity

Heliport Operations

Key Takeaways

  • Capped airfares (Rs. 2500 for 1-hour flight)
  • Viability Gap Funding (VGF) to airlines
  • Revival of unserved/underserved airports
  • Focus on regional economic development

Probable Questions

UDAN scheme has been a game-changer for regional connectivity but faces hurdles in long-term commercial viability. Comment.

MediumHigh

Mains Answer Fodder

UDAN is a case study for 'Regional Connectivity' and 'Infrastructure as a Growth Engine'. In GS3, discuss it under 'Infrastructure: Energy, Ports, Roads, Airports, Railways'. Use the 625 routes and 90 operationalized airports to demonstrate the expansion of the aviation sector. Mention 'UDAN 5.0' for its focus on helicopter and small aircraft connectivity in hilly regions.

Convergence Schemes

  • Sagarmala (for Seaplanes)
  • Bharatmala (for airport-road connectivity)
  • PM Gati Shakti National Master Plan

Sector Tags

InfrastructureAviationConnectivity