UDAN MoUs to Be Finalised in Three Weeks, Says Aviation Minister

Govt to complete all signings of UDAN MoUs within three weeks: Union Aviation Minister Ram Mohan Naidu

New Delhi, September 22

Speaking at a press conference following the MoU signing ceremony for the upcoming phase, Naidu confirmed that "21 states have already entered into pacts with the Ministry of Civil Aviation," with West Bengal scheduled to sign on the 28th.

The regional connectivity initiative, which completed a ten-year run, now stands extended for another decade with an outlay projected to deliver an economic impact of up to Rs 60,000 crore.

"On the 28th we have the MoU signing with West Bengal also, and the other states are just trying to finalize the MoU document so very soon, probably in two to three weeks, we are going to close all the MoUs," Naidu said.

The minister noted that the earlier iteration of the scheme enabled the operationalisation of more than 90 airports over the past decade, extending subsidized air connectivity to approximately 1.54 crore passengers across the country.

"It is indeed a very important day for us in the Ministry of Civil Aviation as we have done MoUs with the states. It is a revolutionary scheme in the country which has propelled regional connectivity across the country," Naidu stated.

He added that under the fresh framework, airport construction timelines will face stricter scrutiny under a challenge model, cutting the earlier average gestation period from three years to an 18-month completion target once work commences.

"We have extended it for 10 more years, taking some observations from the earlier UDAN. Rather than taking all the airports at once, we have created a system where the most important ones go on a challenge mode to increase the speed with which the airports are getting constructed," the minister said.

Highlighting the financial blueprint and fleet expansion, Naidu explained that the government plans to deploy nearly Rs 30,000 crore for the next 10 years, which could double with contributions from states and other stakeholders. He underscored the ambition to see at least five domestic carriers operating a minimum fleet of 100 aircraft each to match passenger demand and support long-term goals toward Viksit Bharat 2047, which envisions more than 350 operational airports.

Addressing the situation regarding SpiceJet, Minister Naidu stated that the airline remains under active regulatory watch through the Directorate General of Civil Aviation (DGCA) to safeguard passenger safety and operational standards.

"The immediate activity in the ministry regarding SpiceJet is that we have operational and both to a certain extent financial scrutiny also being done from the ministry through the DGCA because we don't want safety to be at any... any lapse in safety shouldn't be there," Naidu said, noting that while the government continues to engage with the carrier, it operates within the statutory boundaries governing private airlines.

He added that the Centre previously extended support through the Emergency Credit Line Guarantee Scheme (ECLGS) during challenging industry conditions, including headwinds from the West Asia crisis, under which Rs 150 crore was disbursed to the airline.

Naidu emphasized that SpiceJet and its lending institutions must resolve remaining financial arrangements, reiterating that the ministry's primary objective remains ensuring passenger safety is not compromised and travel disruptions are avoided.

— ANI