UPSC Prelims Practice Questions — Govt. revamps UDAN scheme with changes in subsidy

Q1. Under the Modified UDAN scheme approved by the Union Cabinet in March 2026, how many airports are targeted to be developed from existing unserved airstrips?

  • A. 50
  • B. 100
  • C. 200
  • D. 663

Q2. In the context of the UDAN scheme, the term 'Viability Gap Funding' (VGF) most precisely refers to which one of the following?

  • A. A subsidy paid to airlines to cover the revenue shortfall arising from operating regional routes at capped (below-cost) fares
  • B. A capital grant given to the Airports Authority of India to construct new terminal buildings
  • C. A concessional loan extended to state governments to acquire land for greenfield airports
  • D. A tax rebate offered to passengers travelling on Tier-2 and Tier-3 city routes

Q3. The Regional Connectivity Scheme – UDAN, including its 2026 modified version, is framed under which one of the following policy/legal instruments?

  • A. National Civil Aviation Policy, 2016
  • B. Aircraft Act, 1934
  • C. Airports Authority of India Act, 1994
  • D. National Transport Development Policy, 2014

Q4. The Modified UDAN scheme is implemented by which one of the following Union ministries?

  • A. Ministry of Civil Aviation
  • B. Ministry of Road Transport and Highways
  • C. Ministry of Ports, Shipping and Waterways
  • D. Ministry of Tourism