Civil Aviation Minister Ram Mohan Naidu presents Modified UDAN guidelines, outlining expanded funding, stronger regional connectivity, airport development and tourism-focused aviation growth.

Key Highlights

• Ministry of Civil Aviation holds stakeholder workshop on the Modified UDAN Scheme at Vigyan Bhawan, New Delhi.
• Modified UDAN aims to develop 100 new airports and 200 modern helipads over the next decade.
• Budgetary support of over ₹12,000 crore for airport development and ₹3,600 crore for helipads.
• Airlines to receive five years of Viability Gap Funding (VGF) under a phased support model.
• Removal of seat caps for larger aircraft to improve affordable regional connectivity.
• State-recommended routes to receive priority under the revised scheme.
• New operational guidelines aim to ensure faster route launches and stronger airline accountability.
• Scheme expected to boost tourism, trade, employment and regional economic development.

Civil Aviation Ministry Unveils Next Phase of UDAN to Expand Regional Air Connectivity Across India

New Delhi, July 16: The Ministry of Civil Aviation has unveiled the roadmap for the Modified UDAN Scheme, outlining the next phase of India’s flagship regional connectivity programme aimed at making air travel more accessible while expanding aviation infrastructure across the country.

The new framework was presented during a high-level stakeholder workshop at Vigyan Bhawan, New Delhi, inaugurated by Union Civil Aviation Minister Ram Mohan Naidu Kinjarapu in the presence of Minister of State Murlidhar Mohol, Civil Aviation Secretary Samir Kumar Sinha, Airports Authority of India (AAI) Chairman Vipin Kumar, and representatives from airlines, airports, state governments and the aviation industry.

The workshop also featured a digital exhibition highlighting UDAN’s achievements since its launch and showcased the government’s vision for the next phase of regional aviation.

100 New Airports and 200 Helipads Planned

One of the biggest announcements under the Modified UDAN Scheme is the government’s plan to develop 100 additional airports over the next 10 years, supported by an estimated investment of around ₹12,159 crore.

The scheme also proposes the development of 200 modern helipads, particularly in the North Eastern Region and Aspirational Districts, backed by an estimated ₹3,661 crore in funding. These investments are aligned with the government’s long-term vision of Viksit Bharat 2047.

Affordable Air Travel Gets a Major Push

To improve regional connectivity, the government has removed the earlier seat restrictions for larger aircraft under the Regional Connectivity Scheme (RCS).

While affordable fares will continue to apply to 50% of seats, airlines operating aircraft with more than 80 seats will no longer face the previous cap of 40 subsidised seats, enabling greater passenger capacity on regional routes.

Longer Financial Support for Airlines

The Modified UDAN Scheme extends Viability Gap Funding (VGF) support for airlines from the existing three years to five years.

Under the revised model:

• Year 3: 75% of awarded VGF
• Year 4: 50% of awarded VGF
• Year 5: 25% of awarded VGF

The phased support is expected to improve the commercial sustainability of regional routes while encouraging airlines to continue operations beyond the initial subsidy period.

Stronger Focus on Airport Development

Unlike the earlier model where airlines selected routes before airport development, the revised framework prioritises airport readiness first through a structured Challenge Mode, ensuring infrastructure is available before route allocation.

The government has also introduced three years of operational and maintenance support for newly developed regional airports and heliports to ensure long-term viability.

Better Route Planning and Airline Accountability

The Ministry has introduced several reforms to strengthen route implementation.

Only airlines holding a valid Air Operator Permit (AOP) will now be eligible to participate in route bidding, reducing delays caused by inexperienced operators.

Additionally, airlines failing to operationalise awarded routes within the prescribed timeline may lose those routes, which will be re-bid to other eligible operators.

The scheme also gives priority to State Government-recommended routes, ensuring that regional connectivity aligns with local development and tourism priorities.

Driving India’s Aviation Growth

Addressing stakeholders, Civil Aviation Minister Ram Mohan Naidu highlighted the rapid expansion of India’s aviation sector over the past decade.

He noted that India has added 90 airports in the last 12 years, compared to only nine airports added between 2001 and 2014. The Minister also highlighted that India now handles around five lakh domestic passengers every day, while domestic air traffic crossed 1.5 crore passengers in a single month during May.

He cited examples such as Darbhanga, where improved air connectivity has supported exports of Shahi Litchi, and Kishangarh, where the airport has strengthened both marble exports and religious tourism to Pushkar and Ajmer.

The workshop concluded with the release of the Modified UDAN Scheme Document, providing the implementation roadmap for the next phase of India’s regional aviation programme.

Impact on Hospitality, Travel and Tourism

The Modified UDAN Scheme is expected to significantly accelerate growth in India’s tourism and hospitality sectors by expanding air connectivity to emerging destinations, pilgrimage centres, heritage cities and remote regions. The planned development of 100 new airports and 200 helipads will improve access to destinations that have traditionally remained outside the mainstream aviation network.

Hotels, resorts, homestays, tour operators, restaurants and local tourism businesses stand to benefit from increased visitor arrivals as improved regional air connectivity encourages both leisure and business travel. Better airport infrastructure will also strengthen MICE tourism, weekend travel and destination-based tourism circuits.

The scheme’s emphasis on state-recommended routes will allow tourism-rich states to prioritise destinations with high growth potential, while expanded connectivity is expected to improve market access for local food products, handicrafts and regional industries. Overall, the next phase of UDAN reinforces the government’s strategy of using aviation as a catalyst for regional economic development, tourism growth and employment generation across India’s hospitality ecosystem.