Modified UDAN Scheme Launch and Provisions
The Ministry of Civil Aviation organized a stakeholder workshop at Vigyan Bhawan, New Delhi to introduce the Modified UDAN Scheme, which was officially launched by Prime Minister Narendra Modi on July 4, 2026 from Jodhpur Airport. The workshop was inaugurated by Civil Aviation Minister Shri Rammohan Naidu Kinjarapu, along with Minister of State Shri Murlidhar Mohol, Secretary Shri Samir Kumar Sinha, and AAI Chairman Shri Vipin Kumar.
Aviation Infrastructure Growth and Achievements
Minister Naidu highlighted the significant growth in India's aviation infrastructure, noting that from 2001 to 2014, only 9 airports were added (from 65 to 74), while in the last 12 years, 90 airports have been added, bringing the total to 164 operational airports. Additionally, 55 unutilized airstrips have been revived and converted into operational airports. India has become the third largest domestic civil aviation market, with current daily domestic passenger traffic reaching about five lakh passengers, and recording its highest ever monthly domestic air traffic in May with over 1.5 crore passengers.
Modified UDAN Scheme Key Provisions
The Modified UDAN Scheme introduces several significant changes compared to the existing scheme. For affordable airfare, it removes the maximum seat cap of 40 seats per flight for larger aircraft (over 80 seats) while maintaining RCS airfare caps on 50% of seats. The scheme includes acquisition of 2 HAL Dhruv helicopters for PHL and 2 HAL Dornier aircraft for Alliance Air under the Aatmanirbhar Bharat initiative.
For viability gap funding, the tenure of VGF support is extended from 3 years to 5 years with a tapered funding mechanism: Year 3 provides 75% of awarded VGF, Year 4 provides 50%, and Year 5 provides 25%.
Infrastructure Development Funding
The scheme allocates substantial budgetary support for aerodrome development, with approximately ₹12,159 crore (inflation adjusted) to develop 100 airports at ₹100 crore per airport over the next 10 years, aligned with Viksit Bharat 2047 goals. Additionally, ₹3,661 crore (inflation adjusted) is allocated to develop 200 modern helipads in HINER States and Aspirational districts at ₹15 crore per helipad. The scheme also introduces 3-year Operation and Maintenance support for manpower salary costs at aerodromes developed under RCS, providing up to ₹3.06 crore per year per airport and up to ₹0.9 crore for Heliport/Water Aerodrome.
Route Sustainability and Operational Changes
The Modified UDAN Scheme introduces a new definition for 'served airports': those with more than 14 scheduled actual departures per week on average, connectivity to more than 2 city pairs on average, and more than 40,000 total passengers in the last year. For Priority Areas, the threshold increases to more than 21 scheduled actual departures per week. The scheme also prioritizes state-recommended routes during award and implements stricter operational requirements, prohibiting airlines without an Air Operator Permit (AOP) from bidding on routes. Airlines that fail to commence routes within stipulated timeframes will be barred while the route is re-bid.