UDAN 2.0: Elevating India's Regional Air Connectivity

The Union Cabinet approved a revamped UDAN scheme with Rs 28,840 crore outlay for ten years to boost regional air connectivity. It entails developing airports, helipads, and supporting India-made aircraft acquisitions. The scheme also includes Viability Gap Funding for airlines operating on UDAN routes.

The Union Cabinet on Wednesday approved a significant revamp of the UDAN scheme, ensuring an outlay of Rs 28,840 crore over the next decade. This initiative targets enhancing regional air connectivity by funding airport development, helipad construction, and supporting the acquisition of domestically made aircraft.

Information and Broadcasting Minister Ashwini Vaishnaw detailed that the modified scheme includes Viability Gap Funding estimated at Rs 10,043 crore for airlines operating on UDAN routes until FY 2035-36. Additionally, 100 airports will be developed from unserved airstrips with a state partnership, totaling Rs 12,159 crore over eight years.

The mission also prioritizes constructing 200 modern helipads in key districts to boost connectivity and emergency response capacities. Aiding Operation & Maintenance, the plan provides Rs 2,577 crore to cover costs for over 441 aerodromes due to high recurring expenditures and limited revenue.