10 years of UDAN: Scheme facilitates 1.72 crore passengers; government spends ₹5,091 crore

UDAN is India’s regional air connectivity scheme. It was launched on October 21, 2016, to make air travel more affordable and connect unserved and underserved regions. Its central problem is unequal access: smaller cities and remote areas may lack regular flights because airlines cannot initially earn enough from those routes.

The scheme combines capped airfares, concessions, market-based route selection and Viability Gap Funding. These tools encourage airlines to operate routes that might otherwise remain commercially unattractive. Government support helps reduce the financial risk while passengers receive more accessible fares.

UDAN has since supported 1.72 crore passengers, 687 routes and more than 3.68 lakh flights. It has also helped operationalise 95 aerodromes, including heliports and water aerodromes. Modified UDAN now aims to strengthen infrastructure and make regional aviation more sustainable over the long term.

Since its launch in October 2016, UDAN has expanded India’s regional aviation network at a substantial scale. The scheme has enabled 1.72 crore passengers to travel by air. This shows how a policy focused on smaller cities and remote areas can extend air access beyond major aviation centres.

The programme has facilitated more than 3.68 lakh flights and operationalised 687 routes across the country. These routes are supported through a framework designed for markets where passenger demand or airline revenues may initially be limited.

UDAN has also helped operationalise 95 aerodromes. The total includes 17 heliports and two water aerodromes, showing that the scheme supports more than conventional airports. In the North-Eastern states alone, 90 priority regional routes and 12 aerodromes have been operationalised.

The government provides Viability Gap Funding because regional routes may not initially generate enough revenue to support regular airline operations. Smaller markets can have limited passenger demand and lower airport revenues. Without assistance, airlines may avoid these routes or struggle to maintain them.

As of October 15, the government had disbursed ₹5,091.23 crore in VGF for regional airline operations. The funding reduces the gap between what a route earns and what it costs to operate. It works alongside capped fares and other concessions, making flights more accessible while encouraging airlines to serve underserved locations.

The funding also reveals a continuing challenge. UDAN has expanded routes and passenger access, but regional aviation is not automatically financially sustainable. Modified UDAN therefore includes further operational support and infrastructure measures intended to improve the long-term viability of regional connectivity.

The four tools work as a coordinated system. Capped airfares help keep regional flights affordable for passengers. Market-based selection identifies routes and lets airlines compete for opportunities. Together, they create a framework for expanding access without relying only on normal commercial decisions.

Concessions lower some costs connected with operating regional services. Government funding, especially Viability Gap Funding, covers part of the financial shortfall when a route cannot yet support itself through fares and other revenue. This makes it more practical for airlines to serve smaller cities and remote areas.

The approach has produced measurable results. UDAN has operationalised 687 routes and supported more than 3.68 lakh flights. Yet the need for VGF shows that the model still faces financial pressure. Modified UDAN seeks to strengthen infrastructure and provide additional support for more sustainable regional aviation.

When smaller cities and remote regions gain air links, residents have greater access to the national air network. Travel that was previously difficult or unavailable can become more practical. The article presents this as a way to expand regional aviation and improve access in underserved areas.

UDAN has enabled 1.72 crore passengers to travel by air and operationalised 95 aerodromes. These include 17 heliports and two water aerodromes. In the North-Eastern states, 90 priority regional routes and 12 aerodromes have been operationalised, bringing air services to areas receiving special regional attention.

Better connectivity can also give businesses, institutions and communities more links with other parts of the country. The article does not quantify specific job, tourism or income effects. It does show that infrastructure, affordable fares and continued support are central to extending opportunity through regional air travel.

Government support cannot remove every commercial challenge facing regional aviation. Smaller cities and remote areas may have limited passenger demand. Airports serving these markets may also generate lower revenues. Together, these conditions can leave routes financially weak even when airlines receive assistance.

UDAN addresses the gap through capped airfares, concessions and Viability Gap Funding. These measures encourage airlines to operate services that might not initially be viable. However, support helps cover the problem rather than proving that a route has developed enough demand to sustain itself independently.

The continued disbursement of VGF therefore highlights a central tension in the scheme. UDAN has expanded access, but financial sustainability remains difficult. Modified UDAN responds with a ten-year programme for infrastructure, airline operations and aerodrome support, aiming to strengthen routes over the longer term.

Modified UDAN was launched on July 4 to address the infrastructure and viability challenges that remain in regional aviation. Its approved outlay is ₹28,840 crore over ten years, covering financial years 2026-27 to 2035-36. The programme is designed to support sustainable growth and long-term route viability.

The new phase allocates ₹10,043 crore for airline operations. It also plans to develop 100 airports from existing unserved airstrips, build 200 modern helipads and provide operational support to about 441 aerodromes. These commitments extend beyond simply encouraging individual routes.

The original UDAN began in 2016 and used capped fares, concessions, market-based selection and VGF to expand access. The article does not provide an original total outlay for comparison. It does show that Modified UDAN places a clearer ten-year emphasis on infrastructure, operational support and sustainability.