Government to Revamp UDAN Scheme with Focus on Airport Readiness
AVIATION & AIRPORTS

Government to Revamp UDAN Scheme with Focus on Airport Readiness

The Indian government is set to revamp its regional air connectivity scheme, UDAN (Ude Desh ka Aam Nagrik), by prioritising airport readiness before inviting airlines to bid for operating routes. Financial support for the development of unserved airports and airstrips across the country is expected to be a key focus in the upcoming budget, along with stricter assessments of route feasibility, according to sources. Launched in 2017 to boost air travel in the world’s fastest-growing aviation market, the UDAN scheme caps airfares and provides subsidies to airlines for operating on less frequented routes. However, the scheme has faced challenges, with only 60% of the original 615 routes currently operational. A report by the Comptroller and Auditor General (CAG) last year highlighted significant delays in reviving identified airports, with work initiated at only 61% of the planned sites. Airlines have raised concerns about financial burdens resulting from unready airports despite winning bids, as they incur costs from leasing planes and hiring staff. Under the scheme, airlines must commence flights within four months of winning a bid and enjoy a three-year exclusivity period on the routes, shielding them from competition. Remote airports also benefit from reduced aviation turbine fuel (ATF) tax rates and waived airport fees. The civil aviation ministry plans to propose extending the scheme beyond its initial 10-year term, which ends in 2026, to further support regional connectivity. (ET)

The Indian government is set to revamp its regional air connectivity scheme, UDAN (Ude Desh ka Aam Nagrik), by prioritising airport readiness before inviting airlines to bid for operating routes. Financial support for the development of unserved airports and airstrips across the country is expected to be a key focus in the upcoming budget, along with stricter assessments of route feasibility, according to sources. Launched in 2017 to boost air travel in the world’s fastest-growing aviation market, the UDAN scheme caps airfares and provides subsidies to airlines for operating on less frequented routes. However, the scheme has faced challenges, with only 60% of the original 615 routes currently operational. A report by the Comptroller and Auditor General (CAG) last year highlighted significant delays in reviving identified airports, with work initiated at only 61% of the planned sites. Airlines have raised concerns about financial burdens resulting from unready airports despite winning bids, as they incur costs from leasing planes and hiring staff. Under the scheme, airlines must commence flights within four months of winning a bid and enjoy a three-year exclusivity period on the routes, shielding them from competition. Remote airports also benefit from reduced aviation turbine fuel (ATF) tax rates and waived airport fees. The civil aviation ministry plans to propose extending the scheme beyond its initial 10-year term, which ends in 2026, to further support regional connectivity. (ET)

Next Story
Infrastructure Urban

Punjab Allocates Rs 3.6 Billion to Upgrade Ludhiana Schools

Punjab Education Minister Harjot Singh Bains, joined by Rajya Sabha Member of Parliament Sanjeev Arora, announced Rs 360 Mn for school infrastructure upgrades in Ludhiana. The investment is part of the Punjab Sikhya Kranti initiative led by Chief Minister Bhagwant Mann to modernise government schools. The plan includes Rs 170 Mn for the Shaheed-e-Azam Sukhdev Thapar School of Eminence in Bharat Nagar and Rs 30 million for upgrades at the Jawahar Nagar branch. Schools in Gobind Nagar and Cemetery Road will each receive Rs 20 Mn and be developed as Schools of Brilliance. Rs 15 Mn will go to th..

Next Story
Infrastructure Urban

SGPGIMS to Boost Fire Safety with 14 New Officer Appointments

Sanjay Gandhi Post Graduate Institute of Medical Sciences (SGPGIMS) in Lucknow will appoint 14 fire safety officers and support staff to enhance its fire safety infrastructure. The decision was taken during the institute’s 102nd Governing Body meeting, chaired by Chief Secretary Manoj Kumar Singh. The move comes after a fire incident in December 2023, prompting a re-evaluation of safety measures. The chief secretary directed SGPGIMS to adopt strict fire-safety protocols and ensure appropriate staffing levels to maintain constant preparedness. SGPGIMS director Professor Radha Krishna Dhiman..

Next Story
Infrastructure Urban

Kaushalya Logistics Expands Depot Network, Partners with Adani Cement

Kaushalya Logistics has partnered with Adani Cement and expanded its operational footprint as part of an aggressive growth strategy in the cement logistics sector. The company has also strengthened ties with Dalmia Bharat and JK Cement to enhance service capacity. Over the past four months, Kaushalya Logistics has grown its depot network from 70 to over 100 locations. This expansion supports the company’s efforts to meet rising demand from India’s infrastructure and construction sectors. In March 2025, the company handled 0.3 tonnes of cement—a 50 per cent increase from the 0.2 tonne..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?