Introduction and About

  • UDAN is an innovative aviation scheme aiming to make air travel accessible and affordable for the general public.
  • It was implemented under the National Civil Aviation Policy (NCAP) 2016 targeting Tier-2 and Tier-3 cities with emphasis on financial viability and regional connectivity.
  • The Airports Authority of India (AAI), a statutory body functioning under the Ministry of Civil Aviation, is responsible for the overall implementation of the scheme.

 

Pivotal Elements of the UDAN Scheme

  • The Viability Gap Funding (VGF) facet provides necessary financial support to airlines to maintain affordable fares.
  • The Regional Connectivity Fund (RCF) was constituted to back the viability gap funding requirements of the scheme.
  • A cap on airfare is imposed to ascertain affordability.
  • The scheme facilitates reduced taxes on Aviation Turbine Fuel (ATF) and other concessions for airlines, particularly on regional routes.
  • The scheme is underscored by a collaborative governance model encompassing the Centre, States, AAI and private airport operators.

 

Significant Achievements and Milestones of UDAN Scheme

  • Since its inception, 625 routes have been operationalised, connecting 90 airports, which includes 15 heliports and 2 water aerodromes.
  • Over 1.49 crore passengers have benefited from affordable regional air travel enabled by the scheme.
  • The scheme played a significant part in expanding India's airport network from 74 in 2014 to 159 in 2024.

 

Innovative Additions to the UDAN Scheme 

  • Affordable Yatri Cafes at Kolkata and Chennai airports to provide quality food at accessible prices.
  • Introduction of Seaplane Operations under UDAN Round 5.5 encouraging bids from over 50 identified water bodies nationwide.
  • The 'Krishi UDAN Scheme' is aimed at supporting farmers by improving value realisation for agri-produce through effective air logistics, especially benefitting farmers from Northeast, hilly, and tribal regions.
  • The 'Lifeline Udan' initiative focusing on the pivotal task of transporting essential medical cargo to remote parts of the country during the Covid-19 pandemic.