UDAN Scheme Completes 10 Years, Transforming Indian Aviation

India’s regional aviation landscape has undergone a monumental shift over the past decade. The flagship UDAN Scheme (Ude Desh ka Aam Nagrik) completed ten years of operation on October 21, 2026.

Launched in 2016 under the National Civil Aviation Policy, the initiative democratized air travel by making domestic flying affordable for ordinary citizens. It connected remote, unserved, and underserved geographic pockets directly to India’s major economic hubs.

To build upon this momentum, the central government launched the Modified UDAN Scheme on July 4, 2026. This next-generation policy framework focuses on upgrading aviation infrastructure, expanding regional routes, supporting long-term operational sustainability, and fostering indigenous aircraft manufacturing.

What Is the UDAN Scheme?

The Ministry of Civil Aviation launched UDAN as a targeted Regional Connectivity Scheme (RCS) on October 21, 2016. The policy uses market-driven route allocations, airfare caps, tax concessions, and Viability Gap Funding (VGF) to incentivize commercial airlines to fly underutilized regional routes.

India’s aviation ecosystem has expanded at an extraordinary pace since 2014. Operational aerodromes expanded from 74 in 2014 to 166 by 2026, establishing India as the world's third-largest domestic aviation market.

The very first UDAN flight took off between Shimla and Delhi in April 2017. Since that inaugural flight, the scheme has consistently bridged regional connectivity gaps nationwide.

Decadal Milestones: 10 Years of UDAN Achievements

Official operational data compiled through October 2026 highlights the transformative footprint of the UDAN framework across the nation:

• 687 Operational Routes: Active flight corridors connecting tier-2, tier-3, and remote towns across India.
• 95 Operational Aerodromes: Includes 76 regional airports, 17 strategic heliports, and 2 water aerodromes.
• 3.68 Lakh Commercial Flights: Commercial sorties completed under price-capped regional fare structures.
• 1.72 Crore Passengers: First-time and budget travelers accessing fast air transport.
• ₹5,091.23 Crore in VGF: Total financial subsidies disbursed to partner airlines as of October 15, 2026.

This rapid network expansion generated massive direct and indirect employment. Total aviation sector jobs surged from 3 million in 2014 to nearly 7.7 million in 2026, with projections estimating 25 million jobs by 2040.

Connecting the Northeast: Bridging Geographic Isolation

Hilly topography and difficult terrain make travel slow across the northeastern states. Air transport offers a vital lifeline, enabling quick access to specialized hospitals, higher educational institutions, and commercial markets.

Under UDAN, authorities operationalized 90 priority regional routes across northeastern states. They identified 52 regional aerodromes (including specialized helipads and water bases), bringing 12 facilities into full commercial operation. These air corridors accelerate trade in organic produce, boost regional tourism, and integrate local communities with mainland markets.

The Next Phase: Modified UDAN Scheme (2026–2036)

The Modified UDAN Scheme guarantees sustained policy support for another decade, spanning FY 2026–27 to FY 2035–36 with a total financial outlay of ₹28,840 crore.

Strategic Pillars of Modified UDAN:

1. Developing 100 New Airports (₹12,159 Crore): Converts 100 unserved airstrips into fully operational regional airports, allocating ₹100 crore per airfield over eight years.
2. Operation & Maintenance Support (₹2,577 Crore): Offers three years of O&M support for 441 aerodromes, capped at ₹3.06 crore per airport and ₹0.90 crore per heliport/water aerodrome annually.
3. Building 200 Modern Helipads (₹3,661 Crore): Constructs 200 high-altitude and coastal helipads at ₹15 crore each over eight years to ensure emergency response readiness.
4. Viability Gap Funding (₹10,043 Crore): Provides financial assistance to regional airlines over ten years. Route exclusivity remains capped at three years, while financial subsidies taper off after year two to encourage self-sustaining commercial viability.
5. Boosting Indigenous Manufacturing (₹400 Crore): Allocates direct funding for two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier Do-228 aircraft for Alliance Air, advancing the Atmanirbhar Bharat vision.

Inter-Governmental Collaboration & Challenge Mode Portal

The Modified UDAN Scheme relies on active cooperation between the Central Government, State Administrations, Union Territories, and the Airports Authority of India (AAI).

Signatories have already executed 21 Memoranda of Understanding (MoUs) to align regional aviation expansion with local development priorities.

The Ministry introduced the Challenge Mode Portal for Aerodrome Development. State governments and Union Territories compete directly on this digital portal to nominate unserved airstrips and helipads for priority central funding based on land availability and economic potential.

Real-World Ground Impact: Regional Case Studies

1. Purnea Airport, Bihar

Operationalized in 2025, Purnea Airport dramatically improved air access across the Seemanchal and Kosi regions spanning ten districts. Travel time to Kolkata dropped from ten hours by road to two hours by air, while flight time to Patna takes one hour. Its 2.8 km runway accommodates narrow-body airliners like the A320 and B737, accelerating local exports of makhana, litchi, and fresh produce.

2. Tezu Airport, Arunachal Pradesh

Becoming operational in 2021, Tezu Airport serves over two lakh citizens across the remote Lohit district. It slashed travel time to Guwahati to one hour, enabling rapid emergency medical evacuations and supporting cargo exports of organic ginger, cardamom, and rice.

3. Deoghar Airport, Jharkhand

Inaugurated in July 2022, Deoghar Airport provides direct connectivity to the sacred Baba Baidyanath Dham pilgrimage site. It enables fast medical travel to AIIMS Deoghar and has revitalized the regional hospitality economy.

4. Kishangarh Airport, Rajasthan

Serving Kishangarh, Ajmer, and Pushkar since 2017, this regional airfield bypassed the 100 km transit to Jaipur. It streamlines high-value marble exports to Italy, the UAE, and the USA, while creating over 200 direct aviation jobs and supporting local flight training academies.

Decade Overview: Comparative Framework