Prime Minister Launches Viksit UDAN Scheme to Expand Regional Aviation Infrastructure

Prime Minister Launches Viksit UDAN Scheme to Expand Regional Aviation Infrastructure

#GS-2 #Governance & Social Justice #Government Policies & Interventions #GS-3 #Economy #Infrastructure #Current Events #National

Why in News

  • The Prime Minister recently launched the next phase of the regional connectivity scheme, called Viksit UDAN, in Rajasthan.
  • This project aims to improve regional air travel, build modern aviation infrastructure, and spur economic growth in line with the vision of Viksit Bharat 2047.
  • The Union Cabinet had already given its approval for the Modified UDAN Scheme in March 2026 as the basis for this new phase.

Key Features of Viksit UDAN

  • The Viksit UDAN program is an upgraded version of the original Regional Connectivity Scheme UDAN that started in October 2016 to offer cheap and accessible air travel.
  • The government will run this updated program for 10 years, from Financial Year 2026-27 to Financial Year 2035-36, with a budget of ₹28,840 crore.
  • It focuses on connecting Tier-2 and Tier-3 cities, remote regions, hilly terrain, islands, and aspirational districts to bring aviation facilities beyond big metropolitan hubs.
  • Under the scheme, authorities will turn 100 existing unused airstrips into operational airports with an investment of ₹12,159 crore over eight years.
  • The scheme sets aside ₹2,577 crore to support the operation and maintenance of nearly 441 aerodromes for three years.
  • It caps annual operational support at ₹3.06 crore per airport and ₹0.90 crore per heliport or water aerodrome.
  • The plan includes building 200 modern helipads with an outlay of ₹3,661 crore in remote and hilly areas to improve emergency response and healthcare accessibility.
  • To help airline companies run flights on these new routes, the government provides ₹10,043 crore in Viability Gap Funding (VGF) over 10 years with route exclusivity set at three years.
  • Airports will be picked and built through a competitive process called Challenge Mode while promoting domestic aircraft like HAL Dhruv helicopters and HAL Dornier planes.
  • Overall, the project aims to drive tourism, trade, job creation, emergency services, and balanced regional economic growth across the country.

Overview of UDAN Scheme

  • The flagship UDAN initiative is run by the Ministry of Civil Aviation to make flying affordable and reach remote corners of India.
  • Launched under the National Civil Aviation Policy (NCAP) 2016, the market-driven scheme relies on the Airports Authority of India (AAI) as its main implementing agency.
  • The mechanism uses a cap on airfares along with government Viability Gap Funding (VGF) to keep flight tickets cheap for common passengers.
  • State governments also help by waiving landing fees and capping value-added tax on Aviation Turbine Fuel (ATF) at 1% or lower.
  • Because of these efforts, India's working airport count grew from 74 in 2014 to 159 by 2024.
  • The scheme evolved step by step: UDAN 2.0 added helipads, UDAN 3.0 brought tourism routes, UDAN 4.0 focused on hilly and island areas, and UDAN 5.0 added seaplanes.