Revamped UDAN Scheme: 5-Year Subsidy and ₹28,840 Crore Outlay
Why in the news
The government reworked the UDAN regional connectivity scheme to keep thinly used small-city routes alive for longer and to stop charging passengers through a levy.
Key facts
- Outlay: ₹28,840 crore.
- Target: revive Tier-2 and Tier-3 routes that are underused.
- Reason for longer support: many routes became unviable once the subsidy ended.
| Feature | Earlier | Now |
|---|---|---|
| Subsidy (VGF) period | 3 years | 5 years |
| Funding source | Levy on airline tickets | Direct government budget |
Impact
- Passengers bear less burden.
- Financial sustainability improves.
- Airlines on less profitable routes get support and regional infrastructure is strengthened.
About UDAN
- Launched in 2016 under the Ministry of Civil Aviation.
- Aims to improve regional air connectivity and make flying affordable.
- Slogan: “Ude Desh ka Aam Nagrik”.
Exam angle
- Nodal ministry: Civil Aviation; launch year: 2016.
- Subsidy form: viability gap funding (VGF).
- Revised duration: 5 years.