UDAN Scheme

• 28 Apr 2025

Source: PIB 

Why in News? 

The UDAN (Ude Desh ka Aam Naagrik) Scheme recently commemorated its 8th anniversary, highlighting its pivotal role in making air travel more accessible and affordable for the general public.. 

What is the UDAN Scheme? 

• About: 
  • UDAN aims to democratize aviation and enhance regional connectivity, ensuring that even remote regions of the country are accessible by air. 
  • The scheme was designed under the National Civil Aviation Policy (NCAP) 2016, with a focus on connecting Tier-2 and Tier-3 cities through a market-driven yet financially supported model. 
    • The Airports Authority of India (AAI) serves as the nodal agency responsible for its implementation.  
• Objectives and Significance: 

 

• Key Features of UDAN Scheme: 
  • Viability Gap Funding (VGF): Financial support to airlines to ensure affordable fares.  
    • Regional Connectivity Fund (RCF) was created to meet the viability gap funding requirements under the scheme.  
  • Airfare Cap to ensure affordability. 
  • Reduced taxes on Aviation Turbine Fuel (ATF) and other concessions to airlines to make operations viable on regional routes. 
  • Collaborative Governance between the Centre, States, the Airport Authority of India (AAI), and private airport operators. 
• Evolution of the UDAN Scheme: 

• Significant Milestones: 
  • 625 routes operationalized, connecting 90 airports (including 15 heliports & 2 water aerodromes) across India. 
  • Over 1.49 crore passengers benefited from affordable regional air travel. 
  • The airport network expanded from 74 (2014) to 159 (2024). 
• Key Innovations under UDAN: 
  • UDAN Yatri Cafes: Affordable Yatri Cafes have been launched at Kolkata and Chennai airports, offering quality food at accessible prices. 
  • Seaplane Operations: UDAN Round 5.5 has been launched to invite bids from over 50 identified water bodies across the country.  
  • Krishi UDAN Scheme: Designed to support farmers and improve value realisation for agri-produce, Krishi UDAN facilitates timely and cost-effective air logistics, particularly from Northeast, hilly, and tribal regions. 
  • Lifeline Udan was launched to transport essential medical cargo to remote areas during the Covid-19 pandemic.  

Note: The Union Budget 2025-26 has introduced a 'modified UDAN scheme' aimed at further enhancing regional connectivity. 

UPSC Civil Services Examination Previous Year Question (PYQ) 

Q. Examine the development of Airports in India through joint ventures under Public–Private Partnership (PPP) model. What are the challenges faced by the authorities in this regard? (2017)