Wings of Change

1. At a Glance

• UDAN (Ude Desh ka Aam Nagrik) is the Regional Connectivity Scheme (RCS). It aims to make regional air travel affordable while keeping routes economically viable and profitable for airlines. It came out of the National Civil Aviation Policy (NCAP) 2016 [1].
• The scheme was launched on 21 October 2016 and completes ten years in 2026. Its next phase, Modified UDAN, runs from FY 2026-27 to FY 2035-36 with an outlay of ₹28,840 crore [1][2].
• The scheme's focus has shifted from subsidising routes (demand side) to building aerodromes, helipads, Centre–State partnerships and Indian-made aircraft (supply side) [1].
• UPSC relevance: infrastructure (GS-III), inclusive growth, cooperative federalism (GS-II), Atmanirbhar Bharat, and connectivity in the North-East and other remote regions.

2. Why in the News

• 20 Oct 2026: PIB released a ten-year review of UDAN, "Wings of Change" [1].
• 25 Mar 2026: the Union Cabinet approved Modified UDAN with ₹28,840 crore [2].
• 4 Jul 2026: Modified UDAN was formally launched, along with a Challenge Mode Portal for Aerodrome Development for identifying airstrips and helipads [1][3].
• 21 MoUs were signed between the Centre and participating States/UTs under the new phase [1].

3. Background & Evolution

• Rationale: remote and hilly regions were unserved or underserved. NCAP 2016 prioritised affordable regional connectivity through financial support and infrastructure development [1].
• Milestones:
• 21 Oct 2016: RCS-UDAN launched [1].
• Apr 2017: first RCS-UDAN flight, Shimla–Delhi [1].
• Sep 2020: Krishi UDAN launched for air transport of farm produce, especially from the NE, hilly and tribal regions. It works in convergence with Operation Greens [4].
• Apr 2025: 619 routes and 88 airports operational [4].
• 25 Mar 2026: Cabinet approves Modified UDAN. By then 663 routes across 95 aerodromes were operational [2].
• Jul 2026: 679 routes [3]. On 4 Jul 2026, Modified UDAN was launched [1].

• Oct 2026: 687 routes [1].

• The scheme has gone through multiple bidding versions, and Modified UDAN is the next phase built on them [1].

• Funding: Viability Gap Funding (VGF) is supported by a Regional Connectivity Fund, which is financed by a levy on certain domestic flights [5].

4. Core Static Facts

Modified UDAN outlay breakdown (₹28,840 crore; the components add up exactly) [1][2]

5. Multi-Dimensional Analysis

Economic

• Regional connectivity has supported tourism, medical access, agricultural trade and local jobs. Tezu, Deoghar and Kishangarh are the PIB's example airports [1].
• Aviation employment has grown about 2.5 times since 2014 [1].
• VGF moves part of the commercial risk on thin routes from airlines to the state. Tapering support from year 3 is meant to push routes toward commercial self-sufficiency [1].

Social / Equity

• The scheme aims to make air travel accessible to the common citizen, as its name says, through fare caps [1].
• Krishi UDAN gives farmers in the NE, hilly and tribal regions access to air freight [4].

Geopolitical / Strategic

• The NE is under-connected because of its hilly terrain. 90 priority routes there improve access to frontier regions [1].
• Heliports and helipads (17 operational, 200 planned) suit areas with difficult terrain [1].

Scientific / Technological (Atmanirbhar Bharat)

• The new phase builds an ecosystem for Made in India civil aircraft, starting with HAL Dhruv and Dornier acquisitions [1].

Governance / Federalism

• The new phase has three prongs: Centre–State/UT partnership, infrastructure creation and expanded connectivity [1].
• The 21 MoUs and the Challenge Mode portal let States compete for and co-own aerodrome development, an example of competitive federalism [1].

Administrative

• Three years of O&M support targets a known weak point: airports that were built but not used. VGF disbursement also has to be monitored [1].
• In the NE, only 12 of 52 identified aerodromes are operational, which shows the implementation gap [1].

6. Recent Developments (last 12–18 months)

• 25 Mar 2026: Cabinet approves Modified UDAN (₹28,840 crore, FY27–FY36) [2].
• 4 Jul 2026: Modified UDAN launched, with the Challenge Mode Portal for Aerodrome Development [1].
• 17 Jul 2026: PIB backgrounder reports 679 routes [3].
• 15 Oct 2026: cumulative VGF disbursement reaches ₹5,091.23 crore [1].
• 20 Oct 2026: ten-year review published. Totals: 687 routes, 95 aerodromes, 1.72 crore passengers [1].

7. Prelims Hooks

• UDAN = Ude Desh ka Aam Nagrik. It is the formal name of the Regional Connectivity Scheme [1].
• Launched on 21 October 2016, under NCAP 2016 [1].
• First UDAN flight: Shimla–Delhi, April 2017 [1].
• 95 aerodromes operationalised, including 17 heliports and 2 water aerodromes [1].
• 687 routes operationalised as of Oct 2026 [1].
• India is the 3rd-largest domestic aviation market [1].
• Operational airports rose from 74 in 2014 to 166 [1].
• Modified UDAN outlay is ₹28,840 crore over 10 years (FY 2026-27 to FY 2035-36) [1][2].
• Modified UDAN plans 100 airports from unserved airstrips and 200 modern helipads at ₹15 crore each [1].
• Under the new phase, VGF lasts up to 5 years, tapers from year 3, and route exclusivity is 3 years [1].
• O&M support is capped at ₹3.06 crore per airport per year and ₹0.90 crore per heliport or water aerodrome per year [1].
• HAL Dhruv → Pawan Hans and HAL Dornier → Alliance Air (₹400 crore) [1].
• NE: 90 priority RCS routes operational; 12 of 52 identified aerodromes operational [1].
• Krishi UDAN was launched in September 2020 and converges with Operation Greens [4].
• VGF is backed by the Regional Connectivity Fund, financed by a levy on certain domestic flights [5].

8. Why Many UDAN Routes Stop Flying When the Subsidy Ends

• "687 routes" counts routes that were started, not routes still flying today
• The PIB review reports routes "operationalised" (started at some point) [1].
• In 2021 a Parliamentary Standing Committee found that less than 40% of the routes awarded under RCS-UDAN had started. It also found that some started routes had been stopped [7].

• In June 2026 the same kind of committee was still examining "route operationalisation achievements against the discontinuation of activated routes" [8]. The question is still open.

• The design made it easy for airlines to leave

• VGF (Viability Gap Funding: government money that covers the gap between an airline's cost and what passengers pay) was given for a fixed period.
• In the Rajya Sabha in March 2025, the government said UDAN support lasts only three years and is not meant to be permanent [9].

• On a thin route, few passengers fly. When the money stops, the airline often makes a loss on that route, so it drops the route.

• Modified UDAN accepts part of this criticism

• The 2021 committee asked for the support period to be extended by two years. That would give airlines time to make weak routes profitable [7].
• Modified UDAN now gives VGF for up to 5 years, reducing it from year 3 [1]. That is three years plus two, which is what the committee asked for.
• Route exclusivity (no rival airline allowed on the route) is still only 3 years [1]. So in years 4 and 5, a rival can enter while support is shrinking.

9. What the Ten-Year Totals Tell Us When You Divide Them

• About ₹2,960 of subsidy per passenger
• ₹5,091.23 crore of VGF divided by 1.72 crore passengers is roughly ₹2,960 per passenger (own calculation from [1]).

• This is a useful figure for a Mains answer on whether the scheme gives value for money.

• About 47 passengers per flight

• 1.72 crore passengers divided by more than 3.68 lakh flights is about 47 per flight (own calculation from [1]).

• This shows the scheme runs on small aircraft and thin demand, which is why routes depend so much on VGF.

• The next decade spends far more on buildings than on flights

• In Modified UDAN, VGF is ₹10,043 crore, about 35% of the ₹28,840 crore outlay [1][2].
• Airports, helipads and O&M (operation and maintenance: the yearly cost of running an airport) together take ₹18,397 crore, about 64% [1][2].
• Even so, VGF over the next ten years (₹10,043 crore) is about twice what was paid in the first ten (₹5,091.23 crore) [1]. The route subsidy is not shrinking. It is growing.

10. Is a Flight Subsidy a Fair Use of Public Money?

• The strongest objection
• Most Indians travel by bus and train, not by air.
• A subsidy of about ₹2,960 per flyer (own calculation from [1]) helps a small group of people. The same money spent on roads or rail could reach many more people.

• The PIB review gives route, flight and passenger totals, but says nothing about the income of the people who fly [1]. So the claim that UDAN serves the "aam nagrik" (common citizen) is not measured.

• The honest answer

• In hilly areas and the North-East, a road journey can take a day, while a flight or helicopter takes an hour. That is why 17 heliports are running and 200 helipads are planned [1].

• Some benefit reaches people who never fly. Krishi UDAN carries farm produce from the NE, hilly and tribal areas [4]. PIB also points to better medical access [1].

• What the critics get right

• Without data on who flies and why, the equity case rests on stories, not evidence.
• The Ministry of Civil Aviation could publish a passenger profile (home district, purpose of travel) for each route. That would test the claim.

11. Why New Airports Can Still Sit Empty

• Building an airport is not the hard part. Keeping it running is.
• The 2021 committee asked the government to put inactive airstrips owned by AAI (Airports Authority of India) and the States back into use [7].
• The Ministry told the committee that delays came from a lack of land and regional infrastructure [7].

• The North-East shows the gap: only 12 of 52 identified aerodromes are working [1].

• Support for running costs ends before support for airlines

• O&M support lasts only 3 years, capped at ₹3.06 crore per airport per year [1].
• VGF for airlines can last up to 5 years [1].

• A small airport with few flights earns little from landing and parking fees. After year 3, someone else has to pay its running cost. In practice, this falls on the States that signed the 21 MoUs [1].

• Challenge Mode can favour States that are already strong

• Under the Challenge Mode portal, States compete for aerodrome projects [1].
• States that already have free land and money to share costs are better placed to win.
• The States that need connectivity most, such as those with land delays [7], may win the least. The Ministry should keep a reserved share for NE and hill States.

12. What Should Follow, and Who Should Do It

• Ministry of Civil Aviation: report how many routes survive, not only how many start
• Publish how many routes are still flying 1, 3 and 5 years after launch. This is the exact question the Standing Committee took up in 2026 [8].

• Respond point by point to the CAG's compliance audit of RCS-UDAN (Report No. 22 of 2023) [6].

• Tie VGF to results, not only to time

• VGF already shrinks from year 3 [1]. The Ministry could pay more where seats are actually filled, so that airlines earn by carrying passengers and not just by flying the route.

• States: plan running costs before signing for airports

• Each MoU should show who pays O&M after the 3-year central support ends [1]. Otherwise the scheme repeats the problem of airports that were built but not used.

• Check who pays the levy

• VGF is funded by a levy on certain domestic flights [5]. So passengers on busy main routes partly pay for regional flights. This is a cross-subsidy (one group of users paying for another).
• As the VGF bill doubles in the new phase [1][2], the Ministry should publish how large this levy is and how it changes main-route fares.

13. Anchors for Answers

• Data: ₹5,091.23 crore VGF for 1.72 crore passengers, about ₹2,960 per passenger (own calculation) [1]
• Data: More than 3.68 lakh flights for 1.72 crore passengers, about 47 per flight (own calculation) [1]
• Data: NE: only 12 of 52 identified aerodromes working [1]
• Report/Committee: Department-related Parliamentary Standing Committee on Transport, Tourism and Culture, Status of Aviation Connectivity in the Country (2021): under 40% of awarded routes had started; recommended 2 more years of support [7]
• Report/Committee: CAG Report No. 22 of 2023, Compliance Audit on RCS-UDAN (tabled 10 Aug 2023) [6]
• Scheme: Krishi UDAN (2020): air freight for farm produce from NE, hilly and tribal areas, linked with Operation Greens. Use it to show benefits beyond passengers [4]

14. Mains Relevance

• GS-III: Infrastructure (airports); inclusive growth; mobilisation of resources.
• GS-II: Government policies and interventions; federalism (Centre–State MoUs, Challenge Mode).
• GS-I (secondary): regional disparities and the geography of the North-East.
• Possible questions: 1. UDAN has democratised air travel but its financial sustainability remains contested. Critically evaluate the decade of RCS-UDAN and the design changes in Modified UDAN. (250 words) 2. How does the shift from route-subsidy to infrastructure-and-partnership in Modified UDAN reflect the principles of competitive and cooperative federalism? 3. Discuss the role of regional air connectivity in the integration and economic development of the North-Eastern Region.

15. Related Topics to Study Next

• National Civil Aviation Policy 2016: the policy parent of UDAN.
• Krishi UDAN 2.0 / Operation Greens: the agri-logistics link to UDAN.
• Viability Gap Funding (general PPP tool): the same mechanism is used in infrastructure PPPs.
• PM Gati Shakti / National Logistics Policy: multimodal connectivity planning.
• HAL civil programmes (Dhruv, Dornier 228): the Atmanirbhar aviation manufacturing angle.
• Seaplane / water aerodromes: the 2 water aerodromes under UDAN; links to tourism.
• Act East Policy / NE infrastructure (PM-DevINE): the NE connectivity priority.
• Pawan Hans and Alliance Air: the public-sector operators named in the scheme.

16. NCERT Concepts to Revise

• UDAN (Geography): This is the scheme the whole note is about: its aims, tools, routes and Modified UDAN phase.
• Viability gap funding (Economy): VGF is the main subsidy to airlines on thin routes, and the note debates its tapering and cost.
• Cooperative federalism (Polity): Centre–State MoUs and shared aerodrome development in Modified UDAN illustrate Union and States working as partners.
• Competitive federalism (Polity): The Challenge Mode portal makes States compete for aerodrome projects, and may favour already-stronger States.
• Cross-subsidy (Economy): A levy on certain domestic flights funds regional routes, so busy-route passengers subsidise regional flyers.
• Comptroller and Auditor General (Polity): The CAG's 2023 compliance audit of RCS-UDAN is cited as a key source for evaluating the scheme.

17. Common Errors / Trap Areas

• Cabinet approval vs launch: Modified UDAN was approved on 25 Mar 2026 [2] and launched on 4 Jul 2026 [1]. Do not mix the two.
• Changing statistics: route counts were 619 (Apr 2025), 663 (Mar 2026), 679 (Jul 2026) and 687 (Oct 2026) [4][2][3][1]. Passenger figures were 1.68 crore (Jul) and 1.72 crore (Oct). Always quote the date with the figure.
• 100 airports vs "120 destinations": one PIB factsheet mentions 120 new destinations. The Cabinet release and the review say 100 airports [2][1].
• "95 airports" is wrong: the 95 operationalised aerodromes include 17 heliports and 2 water aerodromes [1].
• Ministry trap: UDAN is run by the Ministry of Civil Aviation, not DoNER, even for the NE routes. Krishi UDAN is likewise a Civil Aviation initiative, not an Agriculture Ministry one [4].