The Engine: What is UDAN?
UDAN, which stands for Ude Desh ka Aam Nagrik or “Let the Common Citizen Fly,” is a government scheme launched in 2016. Its core idea was to solve a major imbalance: while India's metro cities were well-connected by air, hundreds of smaller towns and regional
centres were left off the aviation map. The scheme aims to make flying accessible and affordable by operationalizing unserved and underserved airports, thereby stimulating economic growth, trade, and tourism in these areas. The first flight under the scheme took off in April 2017, linking Shimla and Delhi, symbolizing a new era for regional travel.
A New Decade, A New Target
The headline-grabbing goal of building 100 new airports is part of the next phase of this strategy, called Modified UDAN. In early September 2026, the Civil Aviation Minister confirmed plans to invest approximately ₹30,000 crore over the next ten years (from 2026-27 to 2035-36) to achieve this target. This isn't just about building brand new airports from scratch. The plan includes reviving and upgrading existing airstrips, developing heliports for hilly and remote areas, and even creating water aerodromes for seaplanes. The number of operational airports in India has already more than doubled, growing from 74 in 2014 to 166 in 2026.
How It Works: The Financial Model
To get airlines interested in flying on routes with traditionally low demand, UDAN uses a clever financial model. The government provides Viability Gap Funding (VGF) to operators, which is essentially a subsidy to cover potential losses and make these routes profitable. In return, airlines must cap fares for a certain number of seats on each flight. For instance, the scheme famously launched with a price cap of around ₹2,500 for a one-hour flight, making it competitive with AC train fares. This model, funded by both central and state governments, encourages airlines to bid for and operate on routes they would otherwise ignore.
Progress and Challenges on the Ground
The UDAN scheme has made significant strides, connecting dozens of new destinations and enabling millions of passengers to fly. However, the journey has not been without turbulence. A key challenge is the long-term sustainability of the routes. Some routes have ceased operation after the initial three-year subsidy period ended, as passenger demand wasn't sufficient to make them commercially viable on their own. The financial health of smaller regional airlines, which are crucial to the scheme's success, is another persistent concern. Experts note that for the plan to succeed, it requires more than just subsidies; it needs a robust ecosystem of financially healthy airlines and consistent demand.
The Big Picture: More Than Just Flights
The impact of connecting regional India goes far beyond the aviation sector. New flight routes act as economic catalysts for Tier-2 and Tier-3 cities. They boost local tourism, improve access to healthcare, create employment opportunities, and make it easier for goods and people to move, integrating smaller towns into the national economy. By making remote destinations more accessible, from Himalayan regions to island territories, the scheme helps promote a more balanced regional development. With air traffic projected to grow significantly, this expanding network is crucial for meeting future demand and turning India into a global aviation hub.
