The UDAN (Ude Desh ka Aam Nagrik) scheme, launched in 2016 by India's Ministry of Civil Aviation, has expanded regional air connectivity across the country, operationalizing 86 aerodromes, including airports and heliports. The scheme aims to make air travel more accessible by focusing on connecting underserved and unserved regions, particularly in remote areas.
Since its first flight in 2017, UDAN has facilitated air travel on 601 routes, with around 28% of these serving the most remote parts of the country. The initiative works through a market-driven approach, where airlines bid on routes based on demand. Airlines operating on these routes receive financial support through Viability Gap Funding (VGF) and various concessions from airport operators, the central government, and state governments.
Under the scheme, airports are incentivized to waive landing, parking, and other charges for UDAN flights, while airlines benefit from excise duty reductions and state commitments to reduce VAT on Aviation Turbine Fuel (ATF) to 1% or less for ten years. These measures have made it more viable for airlines to operate in less profitable regions.
Several airlines, including Flybig, Star Air, and IndiaOne Air, have leveraged the scheme to establish sustainable business models, contributing to the growth of regional aviation in India. The scheme has also driven demand for a wider range of aircraft, with Indian carriers placing orders for over 1,000 new planes to be delivered in the next 10-15 years.
The scheme has also had a significant impact on tourism, particularly in the northeast region, with routes introduced under UDAN 3.0 and UDAN 5.1 connecting tourist destinations and stimulating local economies. Notable locations like Khajuraho, Deoghar, and Amritsar have seen improved accessibility, while airports in Pasighat, Ziro, and Tezu have boosted tourism in the northeast.
In terms of infrastructure, the number of operational airports in India has more than doubled, from 74 in 2014 to 157 in 2024. The scheme has facilitated travel for over 14.4 million passengers through more than 280,000 flights, covering over 112 crore kilometers.
As the scheme continues to grow, there are plans to expand the number of operational airports to 350-400 by 2047, further enhancing connectivity and driving economic growth in underserved regions.
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