The Blueprint for a Connected Bharat
At the heart of India's ambitious aviation expansion is the 'Ude Desh ka Aam Naagrik' (UDAN) scheme, a regional connectivity initiative launched in 2016. The initial goal was to make air travel affordable and to operationalise a vast network of unserved
and underserved airports across the country. The "100-airport goal" is a cornerstone of this vision, most recently re-energised by the Modified UDAN scheme, which was approved in March 2026. This new phase plans to develop 100 new airports from existing airstrips over the next decade, with an investment of nearly ₹30,000 crore. The idea is simple but transformative: if you can't easily get to an airport, bring an airport closer to you.
How It Actually Works
The UDAN scheme operates on a unique model to make flying on regional routes viable for both passengers and airlines. For passengers, fares on a number of seats per flight are capped, with a one-hour journey costing around an indicative ₹2,500. For airlines, the government bridges the financial gap between the cost of operations and the revenue generated from these capped fares. This is called Viability Gap Funding (VGF). Airlines bid for specific routes, and the operator asking for the lowest subsidy wins the right to operate that route exclusively for a period, typically three to five years. This support system, funded by a small levy on major commercial flights, encourages carriers to fly to smaller towns that would otherwise be ignored.
The Impact on Last-Mile Connectivity
Since its inception, the UDAN scheme has significantly altered India's aviation map. The number of operational airports in the country has more than doubled, growing from 74 in 2014 to over 165 by mid-2026. To date, the scheme has successfully operationalised over 670 routes, connecting 95 airports, heliports, and water aerodromes. This has brought air connectivity to places previously reliant on long road or rail journeys, such as Pithoragarh in Uttarakhand, Rourkela in Odisha, and Pasighat in Arunachal Pradesh. Over 1.68 crore passengers have flown on UDAN flights, demonstrating a clear demand. This new mobility has a cascading effect, boosting local economies, supporting tourism, and providing faster access to healthcare and business opportunities.
Turbulence on the Tarmac
Despite its successes, the journey hasn't been without challenges. The biggest hurdle is the long-term commercial sustainability of these routes. A 2023 audit revealed that many routes were discontinued once the initial three-year subsidy period ended. Airlines often face issues like low passenger numbers on certain routes, making operations unprofitable even with government support. Furthermore, inadequate infrastructure at some regional airports, such as a lack of night-landing facilities or weather-related disruptions, can lead to flight cancellations and unreliability. For the Modified UDAN scheme to succeed, it must address these issues to ensure that new airports become self-sustaining hubs rather than a recurring cost.
The Road Ahead: Modified UDAN
The recently approved Modified UDAN scheme, set to run from 2026 to 2036, aims to tackle these challenges head-on. With a significant outlay of ₹28,840 crore, the focus is not just on launching routes but also on robust infrastructure development. The plan includes developing 100 new airports and 200 modern helipads, with specific allocations for their ongoing operations and maintenance. This new phase also places a stronger emphasis on connecting hilly states, island territories, and other remote regions. By learning from the experiences of the last decade, the government hopes to build a more resilient and self-sufficient regional aviation network, truly cementing last-mile air connectivity across the nation.
