The UDAN (Ude Desh ka Aam Nagrik) scheme is a flagship Regional Connectivity Scheme (RCS) launched by the Ministry of Civil Aviation, Government of India. Initiated in October 2016, the scheme aims to make air travel affordable and widespread across the country, while simultaneously boosting inclusive national economic development, job growth, and air transport infrastructure development across tier-2 and tier-3 cities. The maiden flight under this scheme was flagged off in April 2017, connecting Shimla to New Delhi.
Core Objectives of the Scheme
The scheme operates with the primary vision of democratizing air travel and integrating unserved and underserved airports into the national aviation network. The specific objectives include the following targeted outcomes:
- The scheme seeks to connect unserved and underserved airports located in remote and regional areas of India.
- It aims to make air travel affordable for the common citizen by capping airfares for a certain percentage of seats.
- The initiative attempts to promote balanced regional growth and employment generation through enhanced connectivity.
- It provides a financial stimulus to airline operators to sustain operations on commercially unviable regional routes.
Key Features and Mechanisms
The operational framework of UDAN relies on a combination of financial incentives, fare caps, and infrastructure support provided by both the Central and State Governments.
Viability Gap Funding (VGF)
- The government provides Viability Gap Funding to airline operators to bridge the gap between the cost of airline operations and expected revenues on RCS routes.
- The VGF is funded through the Regional Connectivity Fund (RCF), which is created by levying a small fee on domestic flights operating on major routes.
- The VGF is shared between the Central Government and the State Governments in an 80:20 ratio for standard states.
- For North-Eastern states and Union Territories, the VGF sharing ratio between the Center and the State is 90:10.
Fare Capping and Seating Mandate
- Under the original framework, airfares were capped at ₹2,500 for a one-hour journey covering approximately 500 kilometers on a fixed-wing aircraft.
- Airlines operating under the scheme must allocate a minimum of 9 and a maximum of 40 seats (or 50% of the total capacity) as subsidized RCS seats.
- Operators are granted exclusivity to fly on the awarded RCS routes for a period of three years to ensure market stability and route maturity.
Stakeholder Concessions
- The Central Government offers concessions in the form of reduced excise duty on Aviation Turbine Fuel (ATF) and service tax exemptions.
- State Governments are mandated to reduce VAT on ATF to 1% or less, provide free security and fire services, and supply subsidized electricity and water at airports.
- Airport Authority of India (AAI) does not charge landing, parking, or terminal navigation landing charges for RCS flights.
Evolution of UDAN Scheme Phases
The UDAN scheme has evolved through multiple iterations to address specific connectivity challenges, spanning from fixed-wing aircraft to helicopters and seaplanes.
| Phase | Launch Year | Key Focus Areas and Additions |
| UDAN 1.0 | 2017 | Focused on connecting unserved and underserved airports with standard fixed-wing aircraft operations. |
| UDAN 2.0 | 2018 | Introduced helipad connectivity, specifically targeting priority areas like the North-East, Hill States, and Islands. |
| UDAN 3.0 | 2019 | Added seaplane routes, included tourism routes in coordination with the Ministry of Tourism, and removed the VGF mandate for certain state-sponsored routes. |
| UDAN 4.0 | 2020 | Concentrated on North-Eastern states, hilly regions, and islands, while revising VGF provision limits for Category 2 and 3 aircraft. |
| UDAN 4.1 | 2021 | Introduced special provisions for the Sagarmala Seaplane Services and focused on specialized helicopter operations. |
| UDAN 5.0 | 2023 | Removed the 500 km distance restriction, capped VGF at 600 km, and exclusively focused on Category 2 (20-80 seats) and Category 3 (>80 seats) aircraft. |
| UDAN 5.1 | 2023 | Exclusively designed for helicopter routes to expand connectivity in remote areas, reducing VGF caps and airfare caps for helicopters. |
| UDAN 5.2 | 2023 | Focused on small aircraft operations (Category 1A with less than 20 seats) to connect the most remote and challenging terrains. |
Special Iterations of UDAN
Beyond standard passenger transport, the government has launched specialized versions of the scheme to cater to agriculture, international diplomacy, and crisis management.
Krishi UDAN
- Launched in 2020 by the Ministry of Civil Aviation to assist farmers in transporting agricultural products to improve their value realization.
- The scheme provides waiver of landing, parking, and terminal navigation charges for Indian freighters and passenger-to-cargo aircraft.
- Krishi UDAN 2.0 primarily focuses on transporting perishable food products from hilly areas, North-Eastern states, and tribal regions.
International UDAN
- This extension aims to connect India’s smaller cities directly to key foreign destinations to boost tourism and economic growth.
- State governments identify the routes and provide the necessary financial support for the Viability Gap Funding.
- The first flight under International UDAN connected Guwahati (Assam) to Dhaka (Bangladesh).
Lifeline UDAN
- Initiated during the COVID-19 pandemic in 2020 to ensure a steady supply of essential medical cargo across the country.
- It successfully transported PPE kits, testing equipment, and medicines to remote corners, including North-Eastern states and island territories.
Key Facts and Trivia for UPSC Prelims
Aspirants must note the following high-yield facts regarding the implementation and regulatory framework of the UDAN scheme.
- The scheme is a vital component of the broader National Civil Aviation Policy (NCAP) released in 2016.
- The Airports Authority of India (AAI) serves as the primary implementing agency for the scheme.
- An “unserved airport” is defined as any airport at which there have been no scheduled commercial flights during the last two flying schedules.
- An “underserved airport” is defined as any airport at which there operate no more than seven scheduled commercial passenger flights per week.
- The first seaplane service under UDAN was launched in October 2020, connecting the Sabarmati Riverfront in Ahmedabad to the Statue of Unity in Kevadia, Gujarat.
- The Ministry of Civil Aviation launched the “Udaan Vimarsh” portal to facilitate transparent bidding and route allocation among airline operators.
- Over 500 routes and more than 75 airports (including heliports and water aerodromes) have been successfully operationalized under the scheme as of its sixth anniversary.