Modified UDAN Scheme

The Regional Connectivity Scheme (RCS) “UDAN” (Ude Desh Ka Aam Naagrik) was launched in 2016 by the Ministry of Civil Aviation to provide connectivity to un-served and under-served airports of the country.
It aims to achieve its objective through revival of existing air-strips and airports to make flying affordable to the common citizen, especially in Tier-2 and Tier-3 cities.
UDAN operates on a market-driven model, where airlines assess demand on specific routes and submit proposals during bidding rounds.
The scheme incentivizes airlines to connect underserved regions by offering them support through Viability Gap Funding (VGF) and various concessions provided by airport operators, the Central Government, and State Governments.
- VGF is a financial grant provided by the government to support projects that are economically justified but commercially unviable.
The Airports Authority of India (AAI) is designated as the Implementing Agency under this Scheme.
- AAI is a statutory body, under the Directorate General of Civil Aviation, Ministry of Civil Aviation.
Following four successful rounds of the scheme, the Ministry of Civil Aviation launched UDAN 5.0 in 2023 to further enhance the connectivity to remote areas and achieve last mile connectivity through helicopters.

The Government of India has launched the Modified UDAN Scheme to accelerate aviation-led development.
The Modified UDAN Scheme focuses on expanding regional aviation infrastructure through the development of 100 airports from existing unserved airstrips.
It also provides financial support for Operations and Maintenance of regional airports, development of 200 modern helipads, and continued Viability Gap Funding to sustain regional airline operations.
Further strengthening the vision of Atmanirbhar Bharat (Self-reliant India), the scheme promotes the induction of indigenous aircraft and helicopters, including HAL Dhruv and Dornier platforms, for operations in underserved and remote regions.

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