India Unveils Next Phase of UDAN to Expand Regional Air Travel

The Minister said India's aviation sector has witnessed remarkable expansion over the past decade.

The Ministry of Civil Aviation has unveiled the next phase of the Modified UDAN Scheme, outlining an ambitious plan to strengthen regional air connectivity, expand airport infrastructure and make flying more accessible across India. The roadmap was presented during a national workshop at Vigyan Bhawan in New Delhi, bringing together airlines, airport operators, state governments and industry stakeholders to discuss the future of regional aviation.

Union Minister for Civil Aviation Rammohan Naidu Kinjarapu inaugurated the workshop, joined by Minister of State Murlidhar Mohol, Civil Aviation Secretary Samir Kumar Sinha and Airports Authority of India (AAI) Chairman Vipin Kumar. The event also featured a digital exhibition and documentary showcasing the achievements of the UDAN programme since its launch.

The Minister said India's aviation sector has witnessed remarkable expansion over the past decade. He noted that while the country had only 74 airports by 2014, another 90 airports have been added during the last 12 years, including the revival of 55 previously unused airstrips. He credited the UDAN initiative with helping India become the world's third-largest domestic aviation market.

Modified UDAN brings bigger investment and stronger support

The updated scheme introduces several reforms designed to improve connectivity while encouraging airlines to expand services into underserved regions. Affordable fares will continue under the Regional Connectivity Scheme (RCS), with the cap on subsidised seats remaining at 50% of aircraft capacity, while removing the earlier limit of 40 seats for aircraft carrying more than 80 passengers.

Airlines will also receive five years of Viability Gap Funding (VGF) instead of three, with financial support gradually reducing during the final three years. Government plans to invest around ₹12,159 crore over the next decade to develop 100 airports, alongside ₹3,661 crore for the construction of 200 modern helipads in North Eastern states, hilly regions and aspirational districts.

The scheme also introduces operational support for newly developed airports and heliports, including funding for staffing costs during the first three years. Airlines will now be required to hold a valid Air Operator Permit before bidding for routes, while route awards will be based on aircraft availability and realistic business plans to improve implementation.

Aviation growth expected to boost regional development

The government believes the next phase of UDAN will create stronger economic opportunities by improving access to smaller cities and remote regions. New provisions include prioritising state-recommended routes, allocating slots for regional flights at major airports where possible and revising the criteria used to identify underserved airports.

Highlighting the programme's impact, Rammohan Naidu said cities such as Darbhanga, Kishangarh, Jharsuguda, Keshod and Nanded have benefited from improved air connectivity. He noted that Darbhanga's famous Shahi litchi now reaches international markets, while Kishangarh's airport has strengthened both marble exports and religious tourism.

The Minister also pointed to the rapid growth in domestic aviation, saying India now handles around five lakh domestic passengers every day, with more than 1.5 crore passengers travelling in May alone, the highest monthly domestic traffic ever recorded.

The workshop concluded with the launch of the Modified UDAN Scheme Document, which sets out the implementation framework for the programme. Officials said the next phase will continue expanding affordable air travel, strengthen regional economies, promote tourism and trade, and create new employment opportunities while supporting the broader vision of Viksit Bharat 2047.