What is the Modified UDAN Scheme?
The Modified UDAN (Ude Desh ka Aam Nagrik) scheme, announced in the Union Budget 2025-26, is a comprehensive 10-year initiative (FY 2026-27 to FY 2035-36) with a total outlay of ₹28,840 crore. It aims to:
- Ensure affordable air travel for all
- Improve connectivity to Tier-2 and Tier-3 cities
- Promote infrastructure development
- Achieve long-term operational sustainability
Background: Challenges of Original UDAN
The original UDAN scheme, launched in October 2016, achieved significant milestones but faced sustainability challenges:
- 663 routes operationalized, carrying 162.47 lakh passengers
- Only 7% to 10% of routes remained financially viable after subsidy period ended
- The 3-year subsidy cap was insufficient for airlines to develop self-sustaining markets
- By February 2026, 327 of 663 routes had fallen into disuse
- 15 of 95 airports revived under the scheme ceased operations
Key Components of Modified UDAN
1. Development of Aerodromes
- 100 new airports to be developed from existing unserved airstrips
- Outlay: ₹12,159 crore over eight years
- Focus on connecting smaller towns and remote regions
2. Operation and Maintenance Support
- O&M support for 441 airports, heliports, and water aerodromes
- Duration: 3 years per aerodrome
- Capped at ₹3.06 crore annually per airport
- Capped at ₹0.90 crore annually per heliport/water aerodrome
- Total outlay: ₹2,577 crore
3. Development of Helipads
- 200 modern helipads in priority regions
- Estimated cost: ₹15 crore per helipad
- Outlay: ₹3,661 crore over eight years
- Addresses geographically difficult regions where conventional airports are not feasible
4. Viability Gap Funding (VGF)
- Outlay: ₹10,043 crore over ten years
- Supports airline operations on regional routes with low initial passenger demand
- Covers high operating costs in underserved markets
5. Atmanirbhar Aviation Capacity
- Deployment of HAL Dhruv helicopters with Pawan Hans
- Deployment of HAL Dornier aircraft with Alliance Air
- Strengthens indigenous aviation manufacturing
- Improves operations in remote and difficult terrain
Key Achievements of Original UDAN
- Operational airports: Increased from 74 (2014) to 165 (July 2026)
- India now the world's third-largest domestic aviation market
- 679 routes connecting 95 airports, heliports, and water aerodromes
- 3.58 lakh flights operated under the scheme
- 1.68 crore passengers benefited
- Improved connectivity to remote regions: Tezpur, Pasighat, Diu, Pithoragarh, Rourkela
- Passenger facilities: UDAN Yatri Cafés, Flybrary, free Wi-Fi services
Significance for India
Economic Impact
- Promotes tourism and local economic activity
- Reduces travel time to remote areas
- Creates employment opportunities in aviation sector
- Supports regional development
Social Impact
- Improves access to healthcare and emergency services
- Makes air travel affordable and inclusive
- Connects geographically isolated communities
Strategic Importance
- Strengthens regional mobility
- Supports defense and security operations in remote areas
- Promotes indigenous aviation manufacturing under Atmanirbhar Bharat
Constitutional/Policy Framework
- UDAN is under the Regional Connectivity Scheme (RCS)
- Aligned with government's vision of inclusive growth
- Supports Digital India initiatives through passenger facilitation
- Promotes Self-Reliant India through indigenous aircraft deployment
UPSC Mains Question
"Modified UDAN can transform regional connectivity and promote inclusive economic growth in India. Discuss its significance and challenges."