The UDAN (Ude Desh ka Aam Nagrik) scheme marks its 10th anniversary on 21 October 2026, having connected over 1.49 crore passengers to affordable regional air travel since its launch on 21 October 2016, according to a factsheet released by the Civil Aviation Ministry on Tuesday. The milestone underscores the scheme's central ambition: putting air travel within reach of ordinary Indians in cities and districts that commercial aviation had long bypassed.

Scale of Connectivity Achieved

Across a decade of operations, 625 UDAN routes have been made operational, linking 90 airports — including 2 water aerodromes and 15 heliports — spread across the country. The Civil Aviation Ministry's factsheet credits the scheme with strengthening regional tourism, improving healthcare access, and facilitating trade, catalysing economic growth particularly in Tier-2 and Tier-3 cities. India's airport network itself has more than doubled in the same period, growing from 74 airports in 2014 to 159 airports in 2024.

The Next Phase: 4 Crore Passengers and 120 New Destinations

Building on this foundation, a revamped version of UDAN aims to add 120 new destinations and enable affordable air travel for 4 crore additional passengers over the next decade. The revised scheme places special emphasis on expanding connectivity to remote, hilly, and aspirational districts, with a particular focus on the North Eastern region and dedicated support for helipads and smaller airports. The government has also committed to developing 50 new airports within the next five years, including new greenfield airports in Bihar, expansion of Patna Airport, and a brownfield airport at Bihta.

Financial Incentives Driving the Scheme

The scheme's uptake has been underpinned by a layered incentive architecture. A total of ₹4,023.37 crore has been disbursed as Viability Gap Funding (VGF) to promote connectivity to underserved regions. Landing and parking charges for Regional Connectivity Scheme (RCS) flights have been waived, and the Airports Authority of India (AAI) does not levy Terminal Navigation Landing Charges (TNLC) on these services. A discounted Route Navigation and Facilitation Charge (RNFC) is also applied. For the first three years, excise duty on Aviation Turbine Fuel (ATF) purchased at RCS airports is capped at 2 per cent.

Centre-State Partnership at the Core

State governments have played a complementary role, committing to reduce VAT on ATF to 1 per cent or less for a period of ten years and providing essential services — including security, fire services, and utilities — at concessional rates. Airlines are additionally encouraged to enter code-sharing agreements to extend their operational reach. According to the factsheet, this collaborative framework has enabled airlines to serve regions that were commercially unviable under normal market conditions. Notably, this is also the context in which the scheme's critics have argued that route viability beyond the VGF window remains an unresolved challenge.

What Comes Next

As the scheme enters its second decade, the government's twin targets — 120 new destinations and 4 crore passengers — will test whether the infrastructure and funding architecture can scale at the pace aviation demand in smaller cities is expected to grow. The performance of upcoming airport projects in Bihar and the pace of helipad development in the Northeast will be early indicators of whether the next phase matches the ambition of the first.