The Ministry of Civil Aviation, Government of India, organized a workshop on the Next Phase of the UDAN Scheme, at Vigyan Bhawan, New Delhi, bringing together key stakeholders from the aviation sector to deliberate on the future roadmap for regional air connectivity in the country. The scheme ‘Modified UDAN’ was launched by Prime Minister Shri Narendra Modi on 4th July, 2026 from Jodhpur Airport.

The workshop was inaugurated by Shri Rammohan Naidu Kinjarapu, Union Minister of Civil Aviation; in the presence of Shri Murlidhar Mohol, Minister of State for Civil Aviation; Shri Samir Kumar Sinha, Secretary, Ministry of Civil Aviation and Shri Vipin Kumar, Chairman, Airports Authority of India (AAI).

The event commenced with the inauguration of a digital exhibition on UDAN, showcasing the achievements and transformative impact of the scheme in enhancing regional air connectivity across the country. A short film highlighting the success of UDAN was also screened during the inaugural session.

In his keynote address, Shri Rammohan Naidu Kinjarapu introduced the next phase of UDAN and outlined the Government’s vision for expanding regional air connectivity, promoting balanced regional development and ensuring that the benefits of aviation reach every corner of the country.

Shri Ram Mohan Naidu in his address stated, "In 2001, India had 65 airports. By 2014 the number increased to 74 airports – which is 9 airports added in 13 years. And in the last 12 years, we have added 90 airports! From 9 to 90! 55 unutilized and unserved airstrips have been revived and converted into operational airports! This transformatory growth, with India rising to be the 3rd biggest domestic civil aviation market has been possible with PM’s farsighted UDAN vision! 10 years ago, traffic was mostly concentrated on top six airports, leaving Tier-II and Tier-III cities underserved or unserved. But then, the National Civil Aviation Policy 2016 announced under the visionary leadership of Prime Minister completely transformed the picture of our civil aviation landscape."

Sharing about UDAN's impact, the Minister said, "Under PM's transformative leadership, the perception of aviation in the country has changed. The psychology of common man has evolved. While 10-20 years ago, people used to stand outside airport boundary wall to catch a glimpse of the aircraft; today's generation will not have that memory. With PM's vision 'Hawai Chappal se Hawai Jahaz' coming to reality, common man from middle class, neo-middle class are confidently entering the airports and flying to remotest corners of the country. Even at the airports we have started Udan Yatri Cafe, where travellers can have pocket friendly refreshments like Tea at Rs. 10, Snacks for Rs. 20".

Highlighting the resilience of India's aviation sector, Shri Ram Mohan Naidu said, "Even when the world was going through geopolitical tensions, we have been recording about  five lakh domestic passengers every day. In fact, in the month of May, India recorded its highest ever monthly domestic air traffic serving over 1.5 crore passengers!"

Sharing the success stories of UDAN, Shri Ram Mohan Naidu added, "Earlier people from Darbhanga had to travel 150 km just to catch a flight. And today, Darbhanga's shahi litchi is reaching global markets like Dubai. Then Kishangarh is one more success story. Before the airport came up in 2017, the marble industry was stranded. But now there is direct connectivity for exports as well as 2 crore pilgrims reaching Pushkar Temple & Ajmer Dargah annually. Keshod, Deogarh, Jharsuguda, Nanded, there are so many UDAN success stories".

On this occasion, the Minister also gave a presentation to the stakeholders, explaining the provisions of Modified UDAN Scheme. He even did a comparative review of the Modified UDAN Scheme with the existing scheme.

Below table, lists down the provisions highlighted by him.

Scheme Provision	Existing UDAN scheme	Modified UDAN Scheme
Affordable Airfare for Passengers
Removal of RCS Seat Caps	RCS airfare caps on 50% seats subject to maximum of 40 seats per flight.	RCS airfare caps on 50% seats with removal of maximum seat cap for larger aircraft (> 80 seats).
Aatmanirbhar Bharat Aircraft Acquisition under UDAN	No provision	2 HAL Dhruv helicopters for PHL and 2 HAL Dornier aircraft for Alliance Air
Viability Gap Funding for Airlines
Extension of VGF support to airline operators for 4th and 5th year	Tenure of VGF support is limited to 3 years	5-year funding support with tapered funding mechanism from Year 3 onwards: Year 3 – 75% of awarded VGF Year 4 – 50% of awarded VGF Year 5 – 25% of awarded VGF
Aerodrome Development
Time-bound development of Aerodromes	Airlines choose routes using a pool of aerodromes, and the selected aerodromes are developed.	Aerodromes will be prioritized for development and inclusion in the Scheme for bidding post Challenge Mode. Airlines to follow a market-based approach to select aerodromes & create routes
Funding for Aerodrome Development	Aerodromes (incl. Heliports) developed or being developed through a fixed budgetary support of INR 5,500 Cr. since 2017.	Budgetary support for identified airports. ~INR 12,159 Cr (inflation adjusted) to develop 100 airports @100 Cr per airport in the next 10 years, aligned with Viksit Bharat by 2047. To develop 200 modern helipads in HINER States and Aspirational districts. @15 Cr per modern helipad, INR 3,661 Cr (inflation adjusted) is required to develop 200 helipads
Funding for Operation and Maintenance of Aerodromes	No Provision	3 Year O&M support for manpower salary costs at Aerodromes developed under RCS @ up to 3.06 Cr per year per airport & @ up to 0.9 Cr for Heliport/Water Aerodrome
Sustainability of Routes
Allocation of Slots at Metro/Major airports for RCS flights	No Provision	Efforts will be made to allocate slots in metro/major airports for RCS operations at viable times
Definition of Underserved Airports	Aerodromes with >7 actual departures per week in the last DGCA schedule considered as served For priority areas, this is >14 actual departures per week	Aerodromes, in the last 1 year before Scheme publishing, with: > 14 scheduled actual departures per week on average AND Connectivity to > 2 city pairs on average, AND > 40,000 total passengers (in the last 1 year) shall be considered as “Served”. In Priority Areas, this shall be (1) >21 scheduled actual departures per week on an average AND (2) AND (3) as above
Prioritized award of pre-determined routes	Market-driven mechanism, wherein airlines propose the routes based on their assessment and such routes are considered for award.	MoCA will include a list of State-recommended routes in the scheme that will be prioritized during award. Airlines to integrate these routes in their networks to holistically enhance regional connectivity.
Ensuring timely operationalization of routes	Currently, airlines can bid without an AOP – to promote new entrant airlines. At times, such airlines bid on many routes and networks beyond their capabilities.	Airlines not holding an AOP will not be allowed to bid on routes. Award of routes will be based upon the business plan and aircraft availability with the airline. If the airline fails to commence the route within the stipulated timeframe, re-bidding of the route will be conducted, while barring the original bidder.

 

Delivering the Guest of Honour address, Minister of State for Civil Aviation Shri Murlidhar Mohol reaffirmed the Government’s commitment to making air travel affordable and accessible for citizens across the country, particularly in Tier-II, Tier-III and remote locations.

A key highlight of the workshop was the launch of the UDAN Scheme Document, outlining the vision, objectives and implementation framework for the next phase of the scheme. The document provides a strategic roadmap for strengthening regional connectivity, enhancing airport infrastructure and unlocking new growth opportunities across the aviation ecosystem.

The workshop witnessed participation from representatives of airlines, airport operators, state governments, industry stakeholders and other aviation partners. Discussions focused on implementation strategies, infrastructure readiness, stakeholder coordination and opportunities for further strengthening the regional aviation landscape.

Since its launch, the UDAN scheme has played a pivotal role in democratizing air travel, connecting underserved and unserved regions, boosting tourism, facilitating trade and generating employment opportunities. The next phase of the scheme aims to build on these achievements and further accelerate the growth of India’s aviation sector. ‎

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Divyanshu Kumar

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