Govt to extend UDAN viability support from 3 to 5 years: Civil Aviation Minister
New Delhi, July 16
The Centre will extend financial support under the UDAN regional connectivity scheme from three years to five years in a phased manner, a move aimed at providing airlines with longer-term viability to operate regional routes, said Union Civil Aviation Minister Ram Mohan Naidu.
While speaking with ANI on the sidelines of the UDAN workshop, the Minister noted that the Indian government offered an outlay of Rs 29,000 crores for the next 10 years, which will likely create a solid ecosystem of civil aviation across the country.
Launched in 2016, UDAN is the Government of India's regional connectivity scheme aimed at making air travel affordable and accessible to the common citizen.
Highlighting the focus on expanding connectivity, the minister said India is adding aviation infrastructure at a rapid pace.
"We are creating airports every single month; we are creating either a new terminal or a new airport in the country, but now we have to look forward to how we improve the connectivity."
Naidu noted that the scheme was initially conceived for a 10-year period, which has now been completed. He added that the revamped UDAN scheme, which was recently launched for another 10 years by Prime Minister Narendra Modi in Jodhpur, has generated strong interest within the aviation industry.
"Today, from the ministry, we have conducted a workshop for the UDAN scheme, which is going to be extended for the next 10 years. This has been launched by our Honourable Prime Minister on the 4th of July in Jodhpur, and there has been a lot of excitement in the civil aviation industry in the country on how we are going to implement it for the next 10 years."
He further said the duration of viability gap funding for airlines operating regional routes will be increased from three years to five years under a tapered support structure.
"We are going to extend the scheme facility, which was earlier given for three years. Now we are going to do it for five years in a tapered approach. So starting from 100 per cent in the first two years, then 75 per cent, 50 per cent and 25 per cent in the next three years," he said.
— ANI
Reader Comments
Finally some good news for people living in smaller towns! I'm from Tiruchirappalli and direct flights are still limited. The 10-year extension gives me hope that we'll actually see affordable flights to more cities. But I wish the government also focused on improving road and rail connectivity to these airports.
Good initiative but I'm skeptical. UDAN has been around since 2016 and we've seen many routes start and then get cancelled due to low demand. Airlines need more than just viability gap funding - they need consistent passenger demand which requires economic development in these regions. Just my two paise.
As someone who works in aviation, I can tell you that the tapered funding approach is smart. It forces airlines to become operationally efficient over time while providing initial support. The ₹29,000 crore outlay is substantial and shows the government's commitment to 'one nation, one aviation market'.
Creating airports every single month is impressive but I hope the focus is also on making these airports functional with good ground infrastructure and reliable public transport connectivity. What's the use of an airport if you can't reach it easily? 🤔
I've used UDAN flights a few times and they've genuinely been affordable. But I'm concerned about whether this scheme is financially sustainable in the long run. If we're spending ₹29,000 crores over 10 years, we need to ensure these routes eventually become commercially viable without subsidies.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.