UDAN Scheme Extended for 10 more years

UDAN Scheme Overview & Extension

• UDAN scheme launched on October 21, 2016, to enhance regional air connectivity
• Recently extended for 10 more years until 2036 by Aviation Minister K Rammohan Naidu
• Operates on market-driven model where airlines assess demand and bid for routes
• Government provides Viability Gap Funding (VGF) and various concessions
• Aims to make air travel accessible to common citizens through affordable fares

Impressive Growth & Achievements

• Operationalized 601 routes connecting 34 states and Union Territories
• Increased operational airports from 74 in 2014 to 157 in 2024
• Successfully operationalized 86 aerodromes under the scheme
• Facilitated over 2.8 lakh flights serving 1.5 crore passengers
• Set ambitious target of 350-400 operational airports by 2047

Support Measures & Financial Framework

• Waiver of landing and parking charges for RCS flights
• Limited excise duty on Aviation Turbine Fuel (ATF) at RCS airports
• States committed to reducing VAT on ATF to 1% or less for 10 years
• Encouragement for airlines to enter code-sharing agreements
• Provision of essential services at reduced rates by state governments

Impact on Aviation Industry & Tourism

• Catalyzed emergence of regional carriers like Flybig, Star Air, IndiaOne Air, and Fly91
• Enhanced connectivity to tourist destinations through UDAN 3.0 and 5.1
• Connected major religious sites like Khajuraho, Deoghar, and Amritsar
• Improved accessibility to remote areas, particularly in Northeast region
• Transformed smaller airports like Darbhanga, Prayagraj, and Hubli into sustainable operations