+
Modified Udan Scheme Gives States Greater Role in Airport Development
AVIATION & AIRPORTS

Modified Udan Scheme Gives States Greater Role in Airport Development

The next phase of the regional air connectivity scheme Udan will give state governments a greater role in identifying high-potential airstrips and aerodromes for development. Civil Aviation Minister Ram Mohan Naidu announced the changes as 21 states signed memorandums of understanding with the Centre for implementation of the modified scheme.

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.

The next phase of the regional air connectivity scheme Udan will give state governments a greater role in identifying high-potential airstrips and aerodromes for development. Civil Aviation Minister Ram Mohan Naidu announced the changes as 21 states signed memorandums of understanding with the Centre for implementation of the modified scheme. 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.

Related Stories

Gold Stories

Next Story
Real Estate

Ajyal Holding Acquires 25% Stake in Sterling Ark

Sterling Ark, an independent integrated real estate advisory and project delivery firm, has announced a strategic alliance with Abu Dhabi-headquartered Ajyal Holding. Under the agreement, Ajyal Holding has acquired a 25 per cent stake in Sterling Ark.The alliance is expected to provide Sterling Ark with a broader platform to pursue opportunities and expand its presence across the region. Ajyal Holding operates across real estate, contracting, fit-out, building materials and technology, among other sectors.Sterling Ark provides end-to-end advisory and project delivery capabilities across real e..

Next Story
Infrastructure Urban

YEIDA Allots Land for Five Projects Worth Rs 4.69 bn

A significant step towards converting industrial investment proposals into on-ground projects was taken at the inauguration of the Uttar Pradesh International Trade Show (UPITS) 2026. Union Home and Cooperation Minister Amit Shah presented Letters of Allotment to representatives of five companies investing in the Yamuna Expressway Industrial Development Authority (YEIDA) region.The five projects have been allotted a total of 71,190 sq m of land and involve a proposed investment of Rs 4.69 bn, with the potential to generate 4,625 employment opportunities.C&R Textiles Private Limited has bee..

Next Story
Infrastructure Energy

Hindustan Zinc Restores 1,105 Hectares of Land

Hindustan Zinc Limited has restored 1,105 hectares of land as part of its efforts to integrate ecological restoration with responsible mining. The rehabilitated area, equivalent to more than 1,500 football fields, covers mining and operational landscapes restored through reclamation, plantation, biodiversity enhancement and sustainable land-use practices.The initiatives form part of Hindustan Zinc’s Sustainability Goals 2030 and its broader focus on creating long-term ecological value alongside business growth.Amarendu Prakash, CEO, Hindustan Zinc, said: “The future of mining will increasi..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code