Govt clears ₹28,840 crore revamped UDAN scheme; offers support for airport operations, shifts airline subsidy burden to exchequer

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Representational record image | Photo Credit: B. Velankanni Raj

The authorities has cleared an expanded mentation of its flagship aviation connectivity programme, the UDAN scheme, with a full outlay of ₹28,840 crore, marking a astir six-fold summation implicit the earlier allocation. The revamped strategy goes beyond airdrome redevelopment to see sustained enactment for operations and maintenance.

In a cardinal shift, the subsidy to airlines operating connected selected Tier-2 and Tier-3 routes, which was earlier funded done a Regional Connectivity Scheme (RCS) levy connected passengers flying connected non UDAN routes, volition present beryllium straight borne by the government.

Under the plan, 100 airports volition beryllium redeveloped from unserved airstrips with an outlay of ₹12,159 crore implicit 8 years, aimed astatine expanding the determination aviation network.

To code the viability of low-traffic facilities, the authorities volition supply operations and attraction (O&M) enactment for 3 years, capped astatine ₹3.06 crore per airdrome and ₹0.90 crore per heliport oregon h2o aerodrome, with a full estimated outgo of ₹2,577 crore covering astir 441 aerodromes.

In a propulsion to amended last-mile connectivity, peculiarly successful distant and hard terrains, the strategy besides proposes 200 helipads, each costing ₹15 crore, translating into a full concern of ₹3,661 crore.

A cardinal displacement comes successful the backing exemplary for airlines. The authorities has projected ₹10,043 crore successful viability spread backing (VGF) implicit 10 years to enactment determination routes. Unlike the earlier framework, wherever subsidies were mostly funded done a levy connected passengers flying connected non-UDAN routes and constricted to 3 years, the revised strategy places the subsidy load straight connected the authorities and extends enactment for a longer duration.

Published - March 25, 2026 05:00 p.m. IST

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