Prime Minister Narendra Modi will on Saturday launch a revamped version of the Ude Desh ka Aam Nagrik (UDAN) regional connectivity scheme, allocating ₹28,840 crore over a decade to boost air travel in underserved areas, according to a government statement.
The modified scheme, announced over nine years after the original UDAN launch, aims to develop 100 existing airstrips across the country into operational UDAN airports, with a capital outlay of ₹12,000 crore. An additional ₹2,500 crore has been earmarked for operations and maintenance (O&M) support during the initial years to ensure the viability of regional airports. To address accessibility in remote and difficult terrains, the plan also proposes building 200 modern helipads.
Viability Gap Funding and Indigenous Aircraft
The modified UDAN continues viability gap funding (VGF) support of over ₹10,000 crore for airlines, “ensuring sustained regional operations while encouraging gradual commercial viability,” the government statement said. The initiative also includes procurement of indigenous aircraft and helicopters, such as HAL Dhruv and Dornier platforms, to enhance connectivity in underserved regions, aligning with the Aatmanirbhar Bharat vision.
Key Allocations Under Modified UDAN
| Component | Allocation (₹ crore) |
|---|---|
| Total scheme outlay (10 years) | 28,840 |
| Development of 100 airstrips into airports | 12,000 |
| Operations & maintenance support | 2,500 |
| Viability gap funding for airlines | Over 10,000 |
| Modern helipads (200) | Part of total outlay |
Industry Response and New Entrants
The industry is optimistic about the scheme's potential. Gautam Sahni of Noida-based Subha Aviation is in the process of launching operations with 106-122 seater aircraft on RCS routes. According to the source, new airports like the one in Noida ensure slot availability, addressing a key constraint regional carriers faced in busy airports.
Jodhpur Airport Terminal Inauguration
Separately, PM Modi will on Saturday inaugurate a new terminal building at Jodhpur Airport, developed at a cost of ₹480 crore. Spread over more than 23,000 square metres, the terminal can handle up to 20 lakh passengers annually. The aviation ministry said the terminal’s architecture is inspired by Rajasthan’s royal heritage, blending traditional elements with contemporary design. Sustainability features include energy-efficient systems, water conservation measures, and green building practices aiming for a 5-Star GRIHA rating. The ministry added that the terminal will boost tourism, trade, and employment in the region.
Business Implications
For C-suite executives and investors, the modified UDAN signals a significant government push to expand regional aviation infrastructure, potentially opening new routes and demand for aircraft, airport services, and ancillary industries. The continued VGF reduces financial risk for airlines operating on thinner routes, while the focus on indigenous aircraft supports local manufacturers like HAL. The development of 100 airstrips and 200 helipads could also create opportunities for construction, logistics, and tourism businesses. The Jodhpur terminal inauguration underscores the government’s commitment to modernizing airport infrastructure, which may enhance regional economic activity.
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