India’s Civil Aviation Minister Ram Mohan Naidu expects the sector to ferry more passengers as well as attain faster growth rates with the new version of the Centre’s flagship programme to enhance regional air connectivity, the Ude Desh ka Aam Naagrik (UDAN) scheme.
The proposal for the modified UDAN scheme was announced in the Union Budget 2025-26 by Finance Minister Nirmala Sitharaman.
Accordingly, the proposal will launch a modified scheme to connect 120 new destinations as well as ferry four crore passengers in the next 10 years.
Speaking to businessline, Minister Naidu stated that the modified UDAN scheme is a “major move on the part of the Centre to give a continued boost to the civil aviation sector in the country.”
“Our Budget proposal for the extension of the scheme for another 10 years was based on a careful assessment of the need for continued support to operationalise and build more airports, water aerodromes, and helipads, besides aiding airlines in reaching the far-flung areas of the country that have had no air services ever,” he said.
“We have already seen the benefits that the scheme has brought in for the entire country.”
Since its inception, the UDAN scheme has facilitated the travel of around 1.5 crore passengers across more than 2.8 lakh flights.
Larger network of routes
The scheme has operationalised 619 routes, including helicopter routes, while the number of operational airports in the country has doubled from 74 in 2014 to more than 157 in 2024.
As of now, the market-driven model of the first UDAN scheme allows airlines to assess demand on specific routes and submit proposals during bidding rounds.
The scheme incentivises the creation of new airports as well as the refurbishment and expansion of existing facilities.
Besides, airlines are supported to connect underserved regions by offering them Viability Gap Funding (VGF) and various concessions provided by airport operators, the Central, and State governments.
“Now with the addition of 120 airports to the domestic network, we plan to enlarge the scale and scope of the aviation sector in India,” the Minister said.
“Till now, 1.5 crore passengers have travelled via the UDAN scheme; we plan to take this number to 4 crore. If we start making the right moves from now, then we can even reach a higher number.”
According to Minister Naidu, the aim of the modified scheme is to enhance last-mile connectivity via the development of new airports, heliports, and sea aerodromes.
“Work is under progress regarding the parameters of the modified UDAN scheme, but the focus is to provide a seamless air travel experience to the common man.”
Notably, the proposal for the new scheme will be scrutinised by the Expenditure Finance Committee (EFC), and then the final policy draft will be subject to the Union Cabinet’s approval.
Consequently, the new version is expected to launch in the latter half of FY26.
