Explained: Modified UDAN Scheme - A ₹29,000-crore infrastructure plan to meet India's booming aviation demand

UDAN (Ude Desh Ka Aam Nagrik), meaning 'Every common citizen of India will fly,' is the Narendra Modi government's ambitious plan to take India's air connectivity to the next level amid booming air travel among the huge Indian population. For this, the central government has a mega plan to build new airports, modern runways, aerodromes, and hundreds of new helipads across the country.

The scheme was originally launched in 2016. It successfully operationalised 669 routes by connecting 95 airports, heliports, and water aerodromes. An official statement said it has been benefiting more than 1.66 crore passengers.

Building on this success, the government approved a Modified UDAN Scheme in March this year. For the updated version, the government has allocated an outlay of ₹29,000 crore over the next 10 years to accelerate the ongoing aviation expansion and further fuel the goal of a 'Viksit Bharat' by 2047.

To mark the launch of Phase 2 of the scheme, Prime Minister Narendra Modi inaugurated the new terminal building at Jodhpur Airport on Saturday.

"From Tier-2 and Tier-3 cities to the remotest regions, aviation has become a powerful engine of economic development, tourism, employment, and social inclusion. As we move towards Viksit Bharat 2047, the next phase of UDAN will further strengthen last-mile connectivity and ensure that the vision of 'Sabki Udaan, Sabka Vikas' becomes a reality across every corner of the country," Union Minister of Civil Aviation Ram Mohan Naidu Kinjarapu said.

The pulse beneath the investment boom

According to the International Air Transport Association (IATA), in FY 2023-24, India handled more than 376 million air passengers, including 306 million domestic passengers and 76 million international passengers. This makes India the third-largest aviation market after the US and China. Notably, the potential will only grow, as IATA has forecast that India's air passenger traffic will triple over the next 20 years. To meet future demand, the government has set a target of increasing the number of airports to 400 by 2047, up from 157 in 2014. The UDAN and Modified UDAN schemes, with their increased outlay, are at the centre of these goals.

Currently, India has around 163 operational airports serving commercial aviation. This includes airports operated by the Airports Authority of India (AAI), public-private partnership (PPP) airports, state government airports, and private airports.

What are the plans under the Modified UDAN Scheme?

The Modified UDAN Scheme aims to strengthen regional air connectivity by developing 100 aerodromes from existing unserved airstrips with an investment of ₹12,159 crore. It also earmarks ₹2,577 crore for the operation and maintenance of regional airports, allocates ₹3,661 crore to build 200 modern helipads, and provides ₹10,043 crore in Viability Gap Funding to support regional airline services. In line with the vision of an Atmanirbhar Bharat, the scheme also encourages the deployment of indigenous aircraft and helicopters, including HAL Dhruv and Dornier platforms, to improve connectivity in underserved and remote areas.