The Indian government has announced a modified UDAN or the Ude Desh ka Aam Naagrik scheme during the announcement of the Union Budget 2025. The aim is to bolster regional air connectivity, with a particular focus on the Northeast region and hilly districts. Finance Minister Nirmala Sitharaman, during her budget speech, outlined plans to connect 120 new destinations and accommodate 4 crore passengers over the next decade. Here are all of the other important details that you would need to know about the modified UDAN scheme.
Union Budget 2025: Modified UDAN Scheme Announced
In the Northeast, the scheme will prioritise the development of helipads and smaller airports in aspirational districts, enhancing accessibility to remote areas. According to an article that was recently published by the Economic Times or the ET, this initiative builds upon the success of the original UDAN programme.
The scheme has already benefited 1.5 crore middle-class travellers across 88 airports and 619 routes. The 2024-25 budget allocation for the scheme stands at ₹502 crore, marking a reduction from the previous year’s budget estimate of ₹1,244.07 crore.
Despite this adjustment, the programme continues to make significant strides, with 1.46 crore passengers having utilised UDAN flights through November 2024. Under the scheme’s framework, airlines receive Viability Gap Funding (VGF) for 50% of aircraft seating capacity.
How Does UDAN Help Airlines Lift Off?
In exchange, carriers must offer half their seats at a fixed rate of ₹2,500 per flight hour, making air travel more accessible to the general public. The subsidy is funded through a ₹15,000 per departure levy on non-UDAN routes, which has accumulated ₹2,038 crore to date.
Civil Aviation Minister K. Rammohan Naidu has indicated plans to extend the Regional Connectivity Scheme beyond its initial 10-year period, which began in 2016. The ministry is also addressing challenges related to airlines discontinuing operations on regional routes after subsidy periods end, with proposals to allow rebidding after one year.
Additionally, the government has announced plans for new greenfield airports in Bihar, complementing the expansion of existing facilities in Patna, to meet the state’s growing aviation demands.
Also Read: Union Budget 2025: What Is The Halwa Ceremony Before Every Budget And What Does It Mean?
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First Published: February 01, 2025 1:34 PM