What is Viksit UDAN? India's new push for regional air connectivity

Last week, Prime Minister Narendra Modi launched Viksit UDAN, the next phase of the government's flagship regional air connectivity programme, UDAN (Ude Desh ka Aam Nagrik), alongside the inauguration of the new terminal building at Jodhpur airport.

 

Approved by the Union Cabinet in March this year, the revamped scheme aims to address the shortcomings of the original UDAN programme while significantly expanding India's regional aviation network and strengthening regional connectivity.

 

What the original UDAN scheme aimed to achieve

 

Launched in October 2016, the UDAN scheme aimed to make air travel affordable while connecting India's underserved and remote regions to the country's aviation network.

   

Under the scheme, airlines bid for commercially unviable regional routes. In return for operating these routes, they received Viability Gap Funding (VGF) from the government. Fares on a fixed number of seats were also capped to keep air travel affordable. State governments also supported the initiative by reducing VAT on aviation turbine fuel (ATF), providing security and fire services, and waiving several airport-related charges.

 

How successful was the UDAN scheme

 

The scheme has significantly expanded India's regional aviation footprint. According to official data, UDAN has operationalised 669 regional routes, connected 95 airports, heliports and water aerodromes, and enabled more than 16.6 million passengers to travel under the scheme since its launch. Since its launch, commercial flights operations reached remote destinations such as Darbhanga in Bihar, Jharsuguda in Odisha and Tezu in Arunachal Pradesh.

 

However, sustaining these routes has proved challenging. According to a government reply in Parliament, 663 routes had been operationalised under UDAN as of February 28, 2026. Of these, 327 routes were later discontinued due to factors including the Covid-19 pandemic, aircraft shortages, supply chain disruptions, maintenance issues at airports and runways, and low passenger demand.

 

The government also informed Parliament that 15 airports developed under UDAN were not operational as of February 2026. While efforts are underway to revive services at airports such as Kalaburagi, Bidar and Belagavi, several other airports have struggled to sustain scheduled commercial flights.

 

How is Viksit UDAN different from the original scheme?

 

To strengthen regional aviation and overcome the limitations of the original scheme, the Union Cabinet approved Viksit UDAN on March 25, 2026. PM Modi formally launched the scheme last week.

 

The scheme has a total outlay of nearly ₹29,000 crore over the next 10 years. It is intended to accelerate aviation-led development while supporting the government's vision of Viksit Bharat 2047. The government expects the revamped programme to enable 40 million additional passenger journeys over the coming decade.

 

The revamped scheme places a much stronger emphasis on building regional aviation infrastructure while continuing financial support for airlines. With an outlay of nearly ₹29,000 crore, Viksit UDAN aims to develop 100 aerodromes by reviving existing unserved and underutilised airstrips, backed by an investment of ₹12,159 crore.

 

It also earmarks ₹2,577 crore for the operations and maintenance of regional airports, while ₹3,661 crore will be used to develop 200 modern helipads across the country. The scheme continues Viability Gap Funding (VGF) for regional airlines, with an allocation of ₹10,043 crore, to ensure the commercial viability of underserved routes.

 

It also seeks to improve connectivity to Tier-2 and Tier-3 cities, remote, hilly and island regions, while promoting the use of indigenous aircraft and helicopters, including HAL Dhruv and Dornier platforms, in line with the Atmanirbhar Bharat initiative. Overall, the government expects Viksit UDAN to significantly increase regional air travel over the next decade while driving aviation-led economic development in line with its Viksit Bharat 2047 vision.

 

Civil Aviation Minister Ram Mohan Naidu described Viksit UDAN as the next chapter in India's regional aviation journey. According to the minister, the scheme will strengthen connectivity across Tier-2 and Tier-3 cities, making affordable air travel accessible to millions more Indians while supporting the country's broader economic growth and regional development objectives.