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UDAN 2.0 Cleared: Big Push, Bigger Questions

The Union Cabinet has cleared a modified version of the regional air connectivity scheme UDAN with a massive outlay of ₹28,840 crore, signalling a renewed push to connect India’s underserved regions. The revamped scheme, stretching from 2026-27 to 2035-36, aims to deepen aviation access across tier-2, tier-3 cities and remote geographies—but it also raises a key question: has UDAN truly delivered on its promise so far?

Expanding India’s Aviation Map

At the heart of the updated scheme is an ambitious infrastructure drive. The government plans to operationalise 100 underutilised airstrips into fully functional airports, backed by over ₹12,000 crore in capital investment. This expansion is expected to unlock connectivity for aspirational districts and smaller cities that have long remained outside the aviation grid.

Complementing this is a dedicated push for last-mile connectivity. Around 200 helipads are planned across difficult terrains such as the Northeast, hilly regions, and island territories. These are not just about travel convenience—they are designed to support emergency services, tourism, and logistics in areas where traditional infrastructure is limited.

Sustaining Airlines Through Subsidies

A critical pillar of UDAN remains financial viability. The scheme continues to rely heavily on Viability Gap Funding (VGF), with over ₹10,000 crore earmarked to support airlines operating on low-demand routes. Additional funds are allocated for maintenance of airports and heliports, addressing a persistent issue: many regional routes are simply not profitable without government backing.

This raises a structural concern—can regional aviation in India sustain itself without long-term subsidies, or does UDAN risk becoming a permanently supported system?

UDAN’s Track Record: Successes and Gaps

Since its launch in 2016, UDAN has undeniably expanded India’s aviation footprint. Over 600 routes have been operationalised, connecting nearly 100 underserved airports. Affordable fare caps have made flying accessible to a wider population, with over 1.6 crore passengers benefiting so far.

However, the scheme’s performance has been uneven. Several routes have been discontinued due to low passenger demand, operational challenges, or airline withdrawals. Infrastructure readiness in remote areas has also lagged, with some airports remaining underutilised despite being developed.

Future Vision vs Ground Realities

The government’s vision under UDAN 2.0 is expansive—targeting 2 crore annual regional passengers and generating thousands of jobs in allied sectors. It aligns with broader goals of economic inclusion and balanced regional development.

Yet, execution remains the key challenge. Rising aviation fuel costs, especially amid global uncertainties, and the limited commercial viability of certain routes could test the scheme’s sustainability. Public-private partnerships and improved route planning will be crucial in bridging this gap.

A Flight Path Still Under Construction

The revamped UDAN scheme represents both ambition and continuity. It builds on a foundation that has improved connectivity but not without friction. While the intent is clear—democratizing air travel and integrating remote regions—the outcomes will depend on sharper execution and realistic demand assessment.

UDAN has taken India closer to accessible aviation, but its next phase must ensure that connectivity is not just created, but sustained.

 

 

(With agency inputs)