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Next Phase of UDAN Takes Flight, Challenge Mode for Aerodrome Development Launched

India’s modified UDAN scheme has entered implementation with 21 agreements; new aerodrome planning powers for states and a decade-long push to connect underserved regions and attract four crore passengers

New Delhi. India’s Civil Aviation Ministry has moved to the next phase of its regional connectivity programme, UDAN (Ude Desh ka Aam Nagrik) from policy planning to implementation, signing Memoranda of Understanding with 21 states and Union Territories and launching a new mechanism for identifying airstrips and helipads for development.

The agreements, signed in New Delhi on September 22, establish a framework for cooperation among the ministry, participating states and Union Territories, and the Airports Authority of India (AAI), the scheme’s implementing agency. The objective is to identify, develop and operationalise aviation assets according to local connectivity needs.

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Civil Aviation Minister Kinjarapu Ram Mohan Naidu also launched the Challenge Mode Portal for Aerodrome Development and released the scheme document for the next round of UDAN route bidding. Through the portal, state governments and Union Territory administrations will be able to nominate airstrips and helipads with potential for regional air services.

The proposed system is intended to make infrastructure planning more responsive to local priorities. Instead of relying solely on centrally identified locations, governments can put forward sites where improved air connectivity could support tourism, trade, healthcare, employment and emergency response.

Airlines will subsequently be invited to bid for identified UDAN routes. The competitive process is designed to select operators transparently while extending services to unserved and underserved areas. Financial support, including viability-gap funding, is expected to remain important for routes that may not initially generate sufficient commercial returns.

Since its launch in 2016, UDAN has sought to make air travel affordable and expand access beyond India’s major cities. According to the ministry, the scheme has so far operationalised 687 routes and 95 aerodromes, with more than 366,000 flights carrying approximately 17.1 million passengers.

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The government’s latest plans are more ambitious. Minister of State for Civil Aviation Murlidhar Mohol said Modified UDAN aims to add 120 destinations and serve four crore additional passengers over the next decade. The programme is also expected to support the development of new airports and helipads, particularly in remote, hilly, island and geographically difficult regions.

A broader framework announced earlier for the modified scheme envisages developing 100 airports from existing unserved airstrips and building 200 modern helipads. It also includes continued operational assistance for regional airports and financial support for airlines serving smaller routes. The scheme is planned for implementation from 2026-27 to 2035-36, with a reported outlay of ₹28,840 crore.

huges

Naidu described the programme as resting on four pillars: passenger affordability, operational sustainability, transparent project selection and indigenous manufacturing. The ministry has linked the initiative to a longer-term goal of developing an Indian civil-aircraft ecosystem, alongside the expansion of airports and routes.

The minister cited Tezu in Arunachal Pradesh and Purnia in Bihar as examples of airports whose connectivity could stimulate regional development. In remote areas, reliable air services can reduce travel times, improve access to medical care and education, and help local businesses reach wider markets.

However, the programme’s success will depend on more than signing agreements. States will need to provide land, roads, security and other supporting infrastructure, while airlines must maintain services after initial financial assistance declines. Passenger demand, airport readiness and the financial sustainability of routes will determine whether new connections become permanent.

The latest initiative nevertheless marks a significant expansion of the original UDAN model. By giving the states, a larger role in proposing aviation assets and combining infrastructure development with competitive route bidding, the government is seeking to build a wider and more durable regional air network.

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