Backgrounder: Modified UDAN: 679 routes, 1.68 crore passengers

Modified UDAN: what happened?

Ten years ago a flight was something you took between big cities. UDAN (Ude Desh ka Aam Nagrik) set out to change that by paying airlines to fly routes that would not pay on their own. It has now finished nine years. The Government has extended it for a full decade as Modified UDAN, with more money for airports and helipads and not just for airline subsidies.

• As of 15 July 2026, 679 routes connect 95 airports, heliports and water aerodromes.
• More than 3.58 lakh UDAN flights have carried over 1.68 crore passengers.
• Modified UDAN was approved by the Cabinet on 25 March 2026 and launched on 4 July 2026 at Jodhpur, where the PM also opened a ₹480 crore terminal.
• India is now the third-largest domestic aviation market in the world.

What is UDAN?

• The Regional Connectivity Scheme (RCS) UDAN was launched on 21 October 2016 under the National Civil Aviation Policy.
• The first UDAN flight ran between Shimla and Delhi on 27 April 2017.
• Airlines get Viability Gap Funding (VGF) for awarded routes, because thin regional routes lose money in the early years.
• By October 2025, more than ₹4,300 crore had been paid as VGF and ₹4,638 crore invested in airport development under RCS.
• Funding: a first-of-its-kind RCS levy, a small fee on selected categories of domestic flights, lets the sector fund part of its own expansion.

What changes under Modified UDAN?

Which constitutional entry covers civil aviation?

• Seventh Schedule, List I (Union List), Entry 29: “Airways; aircraft and air navigation; provision of aerodromes; regulation and organisation of air traffic and of aerodromes; provision for aeronautical education and training and regulation of such education and training provided by States and other agencies.”
• So aerodromes and air traffic are Union subjects, which is why UDAN is a central scheme run with State support.

What do the numbers show?

Sources: MoCA 21 Oct 2025; Cabinet release 25 Mar 2026; PIB Backgrounder 17 Jul 2026.

Why does Modified UDAN matter?

What are the challenges for Modified UDAN?

• Many RCS-only aerodromes have high recurring costs and little revenue, which is why O&M support is needed at all.
• Regional routes have low traffic and high costs; VGF ends after five years, so routes must grow demand fast.
• Small fixed-wing aircraft and helicopters suited to remote terrain are in short supply.
• Hilly, island and remote areas need helipads because full airports are often not feasible.

What should be done next on Modified UDAN?

• Use the eight-year window to finish the 100 airports and 200 helipads on time.
• Track which routes survive after VGF tapers, and redesign support where they do not.
• Expand indigenous aircraft induction beyond the first two Dhruvs and two Dorniers.
• Keep passenger facilities such as UDAN Yatri Cafés, Flybrary and free Wi-Fi at small airports.

What can Prelims ask on Modified UDAN?

• UDAN launched 21 October 2016; first flight Shimla to Delhi, 27 April 2017.
• Modified UDAN: FY 2026-27 to FY 2035-36; ₹28,840 crore; Cabinet 25 March 2026.
• 100 airports from unserved airstrips; 200 helipads at about ₹15 crore each.
• VGF up to five years, tapering from year three; exclusivity three years.
• HAL Dhruv for Pawan Hans; HAL Dornier for Alliance Air.
• Aviation: List I Entry 29.

How to write about Modified UDAN in Mains

Practice question (15 marks, 250 words): Regional air connectivity needs more than subsidies for airlines. Examine how Modified UDAN tries to address the weaknesses of the original UDAN scheme.

• Intro: UDAN since 2016; 679 routes, 1.68 crore passengers.
• Achievements: smaller towns linked, tourism, health access.
• Weaknesses: unviable routes, costly small aerodromes, aircraft shortage.
• Modified UDAN fixes: capex for 100 airports, O&M aid, helipads, tapered VGF, indigenous aircraft.
• Conclusion: viability after support ends is the real test.