UDAN scheme to add 120 new destinations in next 10 years

The finance minister has allocated ₹530 crore for UDAN in 2025-26, compared to the revised estimate of ₹800 crore in 2024-25

Finance minister Nirmala Sitharaman announced on Saturday that the government will launch a modified version of its regional connectivity scheme, UDAN (Ude Desh Ka Aam Naagrik), which will set out to connect 120 new destinations over the next decade.

The scheme, launched by Prime Minister Narendra Modi in October 2016, aims to make air travel affordable by improving connectivity from unserved and underserved airports. (ANI)

“Inspired by the success of UDAN, a modified scheme will be launched to enhance regional connectivity to 120 new destinations and carry 40 million additional passengers in the next 10 years,” Sitharaman told Parliament in her budget speech.

The finance minister has allocated ₹530 crore for UDAN in 2025-26, compared to the revised estimate of ₹800 crore in 2024-25. The scheme, launched by Prime Minister Narendra Modi in October 2016, aims to make air travel affordable by improving connectivity from unserved and underserved airports.

The modified scheme will expand its scope to include support for helipads and smaller airports in hilly, aspirational, and northeastern regional districts, Sitharaman said.

She noted that the original UDAN scheme had already enabled 15 million middle-class people to access faster air travel.

According to the Economic Survey tabled Friday, UDAN has already operationalised 619 routes connecting 88 airports, including two water aerodromes and 13 heliports. The survey also revealed that airport operators and developers, including the Airports Authority of India, have achieved 91 percent of their ₹91,000 crore capital expenditure plan for FY20-FY25 as of November 2024.

In addition to the modified UDAN scheme, Sitharaman announced plans for new greenfield airports in Bihar, supplementing the ongoing expansion of Patna airport and development of a brownfield airport at Bihta.

Industry leaders welcomed the announcements. Pieter Elbers, CEO of IndiGo, India’s largest airline, said, “The Union Budget 2025 has outlined various great initiatives to further develop a future-ready travel ecosystem, with emphasis on people and infrastructure, and aviation as a key enabler.” He added that investments in world-class airports, enhanced connectivity, and streamlined visa facilities would help develop India into a global aviation hub.

Ramendra Verma, partner and Government Consulting leader at Grant Thornton Bharat, emphasised the scheme’s broader economic impact: “The modified UDAN scheme, connecting 120 new destinations, will significantly boost regional connectivity, fostering economic growth by enhancing trade, tourism, and investment opportunities across underserved areas.”