Maarg Manthan · Topic 11.4

UDAN Scheme (Regional Air Connectivity)

Current Affairs & Government Schemes › Infrastructure and Connectivity Schemes · Topic 11.4

UDAN, short for Ude Desh ka Aam Nagrik, is the Regional Connectivity Scheme of the Ministry of Civil Aviation, launched on 21 October 2016 as part of the National Civil Aviation Policy, 2016. It makes flights to unserved and underserved airports affordable by capping fares on part of the seats and giving airlines viability gap funding. The first flight was from Shimla to Delhi on 27 April 2017. Airlines get exclusive rights on a route for three years. The scheme was extended and reworked, and the Union Budget of 2025 announced a modified UDAN to develop 120 new destinations over ten years.

6 min read · UPSC Prelims · Current Affairs & Government Schemes · Infrastructure and Connectivity Schemes

At a Glance

Launched 21 October 2016
Ministry Civil Aviation
Full form Ude Desh ka Aam Nagrik
Type Central Sector Scheme under RCS
First flight Shimla to Delhi, 27 April 2017
Exam link UPSC Prelims, Current Affairs and Government Schemes: Infrastructure and Connectivity Schemes

Where Does It Fit?

This topic covers the air mode within the macro on infrastructure and connectivity. It sits beside roads, ports and rail, and it relies on airport development by the Airports Authority of India. Previous topic: sagarmala-programme-ports/" class="maargx-auto-link" data-preview="At a Glance Approved 25 March 2015 Ministry Ports, Shipping and Waterways Pillars Four Funding vehicle Sagarmala Development Company Limited Plan period…">Sagarmala Programme (Ports). Next topic: National Infrastructure Pipeline (NIP).

How Does the UDAN Scheme Work?

Feature	Details
Launch	21 October 2016, under the Regional Connectivity Scheme of the National Civil Aviation Policy, 2016
Fare cap	Fares on half of the seats on an RCS flight are capped at about Rs 2,500 for a one hour flight of about 500 km, with a proportional cap for other distances. For helicopters the cap is lower per unit
Selection of routes	Airlines bid for routes through a reverse auction. The bidder asking the lowest viability gap funding wins the route
Exclusivity	The winning airline gets exclusive operation on the route for three years
Funding of the gap	Viability gap funding is paid from the Regional Connectivity Fund, which is built from the RCS levy on domestic flights
State role	States provide land, security, and cut taxes on aviation fuel. They share part of the VGF, 20 percent in most States and 10 percent for the North East and hill States

What Are the Rounds and Special Features?

UDAN 1.0: the first round in 2017 gave routes using fixed wing aircraft and started operations from airports such as Shimla, Cuddapah and Nanded
UDAN 2.0: the second round added many more unserved airports and the first helicopter routes
UDAN 3.0: the third round brought tourism routes, water aerodromes and seaplane services
UDAN 4.0: the fourth round gave priority to the North East, hilly areas, islands and heliports, and it supported smaller aircraft
UDAN 5.0: a later round and special calls for helicopters and heliports continued the effort
Seaplanes and helicopters: water aerodromes and heliports widen reach to difficult terrain, with a lower fare cap for helicopters
Airports Authority of India: the Airports Authority of India develops and upgrades smaller airports, and it also takes up some aerodromes
Revival of airstrips: many disused airstrips and aerodromes of the States and the Defence ministry were reopened for civilian use

What Else Should You Remember?

Meaning of unserved and underserved: an unserved airport has no scheduled flights, while an underserved airport has fewer than one flight a day
Time limit on support: each route gets VGF support for three years from the start of operations
RCS levy: a small levy on each domestic departure, collected from airlines, builds the Regional Connectivity Fund
Scheme period: the scheme was first given a ten year life from 2016. It was extended in stages, and the government has said it will continue beyond April 2027 in a reworked form
Modified UDAN: the Union Budget of 2025 announced a modified scheme to connect 120 new destinations and carry 4 crore more passengers over ten years, with a focus on hilly, North Eastern and aspirational districts. It also includes support for smaller airports and heliports
Reported numbers: as reported in 2025, about 649 routes have been operationalised, connecting about 93 airports including heliports and water aerodromes. Figures change with each parliamentary reply
Budget concern: the allocation in the Budget for 2025 to 2026 was reported to be lower than in the previous year, which critics said could slow new routes
Route discontinuation: many UDAN routes have stopped after the three year support ended, because demand could not sustain flights without subsidy
Airline challenges: small aircraft supply, high fuel taxes in some States and low passenger numbers have hurt route viability
Fuel tax: aviation turbine fuel is outside the Goods and Services Tax, and State taxes on it differ. UDAN asks States to reduce the tax to 1 percent
Link with other plans: airport links are planned with roads, as in PM Gati Shakti National Master Plan
Constitutional context: civil aviation is on the Union List, and the States take part by giving land and tax relief

Why Does It Matter for the Exam?

Full form and slogan: Ude Desh ka Aam Nagrik and the aim of making flying affordable
Funding: how the Regional Connectivity Fund and the RCS levy work, and the State share
Features: reverse auction, three years of exclusivity and the fare cap
Special categories: seaplanes, helicopters and the North East
Common errors: calling the scheme a Centrally Sponsored Scheme, or giving the wrong launch year

As an analytical point, UDAN has opened many small airports, but a subsidy that ends after three years cannot create lasting demand alone. Lasting routes need local economic activity, tourism, health access and low operating costs. Linking the scheme to airport development and rail and road feeders improves the odds.

Why Is This Topic Important?

Basics Full form, date, ministry
Funding VGF and RCS levy
Evolution Rounds and Modified UDAN

What Came Next?

The next topic covers the national plan for an infrastructure investment pipeline. Next topic: National Infrastructure Pipeline (NIP).

Key People and Terms

UDAN Ude Desh ka Aam Nagrik
RCS Regional Connectivity Scheme
VGF Support that covers an airline loss on a route
RCS levy Levy on domestic flights
Water aerodrome Place for seaplane landing and takeoff
Heliport Landing site for helicopters

Exam Corner

Points to Remember

Launched 21 October 2016.
Fare cap: about Rs 2,500 for about 500 km and one hour.
Exclusivity: 3 years.
Funding: RCS levy and State share.
Budget 2025: 120 new destinations.

Do Not Confuse With

UDAN and Regional Connectivity Scheme The scheme name versus the policy component under which it runs
Unserved and underserved airports No flights versus fewer than one flight a day
UDAN and Airports Authority of India Scheme for routes versus the agency that builds airports

Memory Hook

Ude Desh ka Aam Nagrik: bid low, fly cheap, three years of support.

Mains Angle

Questions ask whether subsidised flying is sustainable. These points give a balanced frame.

Benefits Access, tourism, health links, jobs
Challenges Route closure, fuel tax, demand
Way forward Link with economy, airports, feeders

A Question You May Face

An original practice question, not a past paper question.

“Examine the achievements and limitations of the UDAN scheme in improving regional air connectivity in India.”

How to Answer

Aim Cheap regional flying.
Method VGF and fare cap.
Gaps Closed routes, thin demand.
Way Demand building and Modified UDAN.

GS Relevance

Prelims: launch, meaning of UDAN, fare cap, VGF, rounds, agencies. GS Paper 3: infrastructure, aviation, regional development, subsidies and funding.

Frequently Asked Questions

What does UDAN stand for?

UDAN stands for Ude Desh ka Aam Nagrik, which means let the common citizen fly. It is the Regional Connectivity Scheme of the Ministry of Civil Aviation, launched on 21 October 2016 to make air travel affordable and to connect unserved and underserved airports across the country.

How does the UDAN fare cap work?

Under UDAN, fares on about half of the seats on a flight of about 500 km and one hour are capped at roughly Rs 2,500, with a proportional cap for other distances. Airlines receive viability gap funding to cover losses, paid from the Regional Connectivity Fund built from a levy on domestic flights.

How are UDAN routes awarded?

Routes are awarded through a reverse auction in which airlines bid for the lowest viability gap funding they need. The winner gets exclusive operating rights on that route for three years. Support ends after three years, so the airline must build enough demand to continue without subsidy.

What is Modified UDAN?

Modified UDAN was announced in the Union Budget of 2025 to continue the scheme for ten years. It aims to connect 120 new destinations and carry about 4 crore additional passengers, with a focus on hilly, North Eastern and aspirational regions, including heliports and smaller airports.

Why have some UDAN routes closed?

Many routes closed after the three year support ended because passenger demand was too low to cover costs. Other reasons include a lack of small aircraft, high State taxes on aviation fuel and weak local links. Experts suggest linking routes to tourism, health access and economic activity.

PYQ Practice — Statement Analysis

1 UDAN was launched in October 2016.

True

The launch date was 21 October 2016.

2 UDAN is a Centrally Sponsored Scheme of the Ministry of Road Transport.

False

It is run by the Ministry of Civil Aviation.

3 Airlines win UDAN routes through a reverse auction on viability gap funding.