Modified Udan Scheme Gives States Greater Role in Airport Development
The programme will continue for another 10 years and projects under the new phase are targeted for completion within 18 months. Naidu said 90 airports had been built under Ude Desh ka Aam Nagrik during the past decade, while the revised approach would prioritise locations identified by states and develop other airports in phases.
Under the new model, state governments will identify suitable locations and facilitate land allocation and acquisition, road infrastructure, last-mile connectivity, security and local clearances. The Ministry of Civil Aviation (MoCA) will execute projects and provide funding, institutional support and the policy framework. Heliports are also planned, particularly in the Northeast and hill states.
The scheme will also seek to revive underserved airports and routes that became non-operational after support under the original programme ended. Udan, launched in 2016, connected more than 687 routes and 97 airports, but operations stopped at facilities including Kushinagar and Moradabad in Uttar Pradesh. Under the reboot programme, states and MoCA will identify such airports before routes are reallocated to airlines.
Viability gap funding (VGF) support for airlines operating Udan routes will be extended from three years to five years. The government plans a staggered increase in fares after the initial three-year period to avoid a sudden cost burden on passengers, which officials identified as a factor behind earlier route closures. Airline operators are being consulted on route selection because their investments and assets will be required for operations. The revised scheme is intended to combine state participation, longer financial support and faster project execution while keeping newly developed airports operational.