The Centre is set to extend financial support for airlines operating under the UDAN regional connectivity scheme from three years to five years in a phased manner, Union Civil Aviation Minister Ram Mohan Naidu said. The move is aimed at providing airlines with greater financial stability and encouraging them to operate more regional routes over a longer period.
Naidu said the government has earmarked an outlay of Rs 29,000 crore for the next 10 years under the renewed regional connectivity initiative. He said the investment would help create a stronger and more sustainable civil aviation ecosystem across the country. Launched in 2016, UDAN, or Ude Desh ka Aam Nagrik, is the government's flagship regional connectivity scheme aimed at making air travel affordable and accessible to ordinary citizens. The scheme seeks to connect smaller cities and towns with larger aviation hubs by supporting airlines operating on regional routes.
Naidu said the government has been rapidly expanding aviation infrastructure across the country, with new airports and terminals being developed at a fast pace. However, he stressed that infrastructure expansion must be accompanied by a significant improvement in air connectivity.
"We are creating airports every single month; we are creating either a new terminal or a new airport in the country, but now we have to look forward to how we improve the connectivity," the minister said. The civil aviation minister noted that the original UDAN scheme was conceived as a 10-year programme, a period that has now been completed. Prime Minister Narendra Modi recently launched the revamped UDAN scheme for another 10 years in Jodhpur, generating considerable interest within the aviation industry, Naidu said.
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He said the ministry had organised the workshop to discuss the implementation of the renewed scheme and examine ways to further strengthen regional air connectivity. "Today, from the ministry, we have conducted a workshop for the UDAN scheme, which is going to be extended for the next 10 years. This has been launched by our Honourable Prime Minister on the 4th of July in Jodhpur, and there has been a lot of excitement in the civil aviation industry in the country on how we are going to implement it for the next 10 years," Naidu said.
Explaining the revised support mechanism, the minister said the viability gap funding provided to airlines would be extended from three years to five years under a tapered approach. The support will begin at 100 per cent during the first two years, after which the assistance will gradually decline to 75 per cent, 50 per cent and 25 per cent over the following three years.
"We are going to extend the scheme facility, which was earlier given for three years. Now we are going to do it for five years in a tapered approach," Naidu said. The government expects the revised funding structure to give airlines more time to establish regional routes and improve the long-term viability of operations connecting smaller cities.
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