India Expands UDAN Scheme with Rs 29,000 Crore Investment

Union Civil Aviation Minister Kinjarapu Ram Mohan Naidu announced a comprehensive expansion of the UDAN regional connectivity scheme, backed by a projected outlay of approximately Rs 29,000 crore over the next decade. The modified framework, launched by Prime Minister Narendra Modi on July 4 in Jodhpur, aims to develop 100 new airports and 200 heliports to improve access to healthcare and economic opportunities in remote regions.

Key policy changes include extending financial viability gap funding (VGF) for airlines from three to five years using a tapered funding structure. The government also increased the flight threshold for 'underserved' airports from seven to 14 weekly flights to allow more routes to receive funding. Additionally, the center will now provide operational and maintenance support for struggling Tier-2 and Tier-3 airports. To support indigenous aviation, the government is procuring HAL Dhruv helicopters for Pawan Hans and HAL Dornier aircraft for Alliance Air.

On July 17, Naidu flagged off the first scheduled commercial flight between Daman and New Delhi, operated by Alliance Air. The service utilizes the newly operational NAMO Airport, a Rs 124 crore facility developed at the Indian Coast Guard Air Station. The direct link reduces travel time to the capital from nearly 10 hours by road to 2.5 hours by air, which Naidu stated will boost tourism and support over 7,000 industries in the Daman, Diu, and Dadra and Nagar Haveli region.