The UDAN (Ude Desh Ka Aam Nagrik) scheme has achieved a new milestone with version 5.5. This phase aims to improve air connectivity in remote areas, hilly areas and islands. Under this initiative, under-served areas will be connected using seaplanes and helicopters.
UDAN (Ude Desh Ka Aam Nagrik) Scheme
- Launched by the Ministry of Civil Aviation, aims to develop regional airports and enhance connectivity.
- A part of the National Civil Aviation Policy 2016.
Objectives
- To improve air connectivity in remote and regional areas of India.
- To provide affordable and accessible air travel in tier-2 and tier-3 cities.
Objectives of UDAN 5.5
- To promote air travel in remote and under-served areas.
- To develop routes connecting 80 water bodies (ponds, dams etc.) • To enhance connectivity for local residents and promote tourism.
- To provide economic benefits by facilitating trade and commerce.
Mode of Operation
- Use of seaplanes and small aircraft with less than 20 passenger capacity.
- Around 400 helipads included for helicopter services.
- Participation of small aircraft operators encouraged.
Bidding Process and Viability Gap Funding (VGF)
- Bidding Process: Operators interested in the scheme are required to participate in the bidding process.
Viability Gap Funding
- The government provides VGF to selected operators, so that they can run services on routes that are not economically profitable.
- This allows air services to operate smoothly in remote and under-served areas.
UDAN Scheme in Budget 2025
- Expansion announced: Finance Minister Nirmala Sitharaman announced the expansion of the UDAN scheme in the Union Budget 2025-26.
- Target in next 10 years: 120 new destinations will be added under the scheme. This is expected to benefit 4 crore additional passengers.
- Financial provision: The total budget of the Ministry of Civil Aviation was not disclosed. ₹540 crore allocated under the UDAN scheme for FY26.
Possibilities of further development under UDAN scheme
Current status
- Currently no seaplane services are operating in India.
- The number of small aircraft in the A1 category is less than 20.
Possible development in next 5 years
- Construction of more than 50 seaplane routes.
- Development of 20-25 new aerodromes.
- Requirement of about 30 additional aircraft.