‘UDAN’ is short for ‘Ude Desh ka Aam Naagrik’, and refers to an extensive regional connectivity scheme in India. UDAN Scheme aims to make air travel affordable and accessible for the common citizen.
Under this scheme, the government reopened unused or closed airports in smaller cities. As of 2025, more than 500 routes across the country have been approved under the UDAN scheme.
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What is the Udan Yojana?
UDAN is a scheme introduced in India by the Indian Government. Ude Desh Ka Aam Nagrik Scheme is a Regional Connectivity Scheme (RCS) launched in October 2016 by the Government of India. The aim of this scheme is to make air travel accessible and affordable, so that every citizen of the country can touch the heights of the sky.
For a long time, air travel in India was considered a luxury for the wealthy. However, the UDAN scheme, launched by the central government in 2016, completely transformed air travel. Now, even ordinary citizens can travel by air with affordable tickets.
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Objectives of the UDAN Scheme
The key objectives of the UDAN Scheme are:
- To reduce airfare for travelers in regional areas by providing subsidies to airlines.
- To establish air connections between underserved and unserved airports, enhancing overall connectivity.
- To revitalize underutilized and non-operational airports.
- To encourage private airlines to operate on routes that are not profitable by offering government incentives.
Funding for the UDAN Scheme
The Ministry of Civil Aviation launched the UDAN Regional Connectivity Scheme for regional airport development. Financial assistance for the UDAN Scheme is provided by the Central and State Governments.
Central Government
- Viability Gap Funding (VGF) to the airlines to subsidise the fair cost.
- Concession on ticket-related taxes.
- Flight’s code sharing.
State Government
- Reducing the GST to 1%.
- Improving fueling infrastructure by coordinating with oil companies.
- 20 % VGF.
- Providing free security personnel and land for airport development.
- Supplying water, electricity, etc., at cheap rates.
Airport Operators
- No charge for parking, landing, storage, etc.
- Nil Terminal Navigation Landing Charge.
- 4% discount on UDAN-RCS flight’s Route Navigation and Facilitation Charge (RNFC).
New flight in the economy of small towns
The UDAN scheme has opened new avenues for tourism, business, and employment in small towns. Travelers previously took hours to complete their journey, but now it can be completed in just a few hours. This is significantly benefiting the country’s economy.