India’s vast geography and diverse regions make efficient air connectivity a critical element in driving economic growth, enhancing national integration, and ensuring equitable development across the country. The UDAN Scheme was launched with the objective of connecting small and medium cities with big cities through air service.
Need for expanding the regional air connectivity in India:
- Decongesting Overloaded Metros: Major urban airports like those in Delhi, Mumbai, and Bengaluru are experiencing severe congestion due to increased passenger traffic.
- Economic and Trade Development: Improved air connectivity can further boost initiatives like “Making Districts as export hubs” thereby facilitating local economies.
- Promoting Tourism: Unlocking Tourism Potential, especially in states like Northeast India, Himachal Pradesh, Uttarakhand, and Rajasthan.
- Enhancing National Security: Improved connectivity, particularly in border and strategic areas such as Ladakh, Arunachal Pradesh, and the Andaman & Nicobar Islands, is critical for national security.
- Disaster Management and Relief: Regions prone to natural disasters, such as floods, earthquakes, and landslides, benefit from rapid response and evacuation efforts when accessible by air.
The Government’s UDAN Scheme
Key features:
- Subsidized Airfare: airfares for a 500 km flight are capped at ₹2,500 for a one-hour journey.
- Viability Gap Funding (VGF): To incentivize non-commercially viable regional routes.
- Development of Airports: Particularly in unserved and underserved areas by improving infrastructure, including runways, terminals, and navigational aids.
- Public-Private Partnership (PPP): Encourages private sector participation in developing regional airport infrastructure.
Achievements of UDAN Scheme:
- As per Ministry of Civil Aviation, UDAN scheme is operating over 2.8 lakh flights and serving 1.43 crore passengers as of August 31, 2024.
- Increased Regional Connectivity: The scheme has launched operations on 583 routes, linking 86 airports, including 13 heliports and 2 water aerodromes.
- Affordable Air Travel: India has emerged as the third-largest domestic aviation market, with the total number of air passengers handled at Indian airports reaching 37.6 crore in FY24—a year-on-year increase of 15%.
- Growth in Regional Aviation: Airlines such as Star Air, Trujet, and Air India Regional have expanded their operations under the scheme. Eg- Akasa Air ordering 200 aircraft within 17 months
- Development of Infrastructure: Airports, such as those in Jharsuguda (Odisha), Kishangarh (Rajasthan), and Pakyong (Sikkim), have been operationalized.
- Boost to Regional Economies and Tourism: To promote tourism, 46 important tourist spots have been selected under UDAN Scheme.
| Issues | Way Forward |
| Out of the 479 airport routes that were revived by the Union Government, 225 have ceased operations. | Enhancing Financial Viability: Implementing revenue-sharing models to incentivize the operationalization of less profitable routes. |
| As per CAG Report, there is excessive collection of Regional Air Connectivity Fund (RCF) and delay on the part of RACFT in raising RCF levy claims on the airline operators. | Streamlining Regulatory Processes: Expediting the process of obtaining regulatory clearances from agencies like the DGCA , state governments, and airport authorities. |
| AAI’s Viability Gap Fund’s claims approved through self-certification led to non-compliance to several scheme provisions. (CAG Report) | Focus on Sustainable Practices and leveraging technology: Adopting fuel-efficient technologies to reduce carbon footprints and Data Analytics for Route Optimization |
India can draw inspiration from the “Regional Connectivity Scheme” (RCS) in the United Kingdom whose emphasis on PPP and operational efficiency, can help realising the vision of ‘New India’.
