Imagine a farmer from a dusty airstrip in Bihar booking a flight to Delhi at an affordable price. That’s the dream UDAN has sold since 2016, air travel for everyday Indians, not just the rich.
That has been the central promise of the regional connectivity scheme since it was first launched in 2016. For years, the vision of Ude Desh ka Aam Nagrik was sold as a way to make air travel accessible to everyday Indians rather than just the wealthy elite.
However, nearly a decade later, the government is essentially admitting that many of these routes struggled to survive once the initial subsidies ran out.
On March 25, 2026, the Union Cabinet approved a revamped program known as Modified UDAN. With a massive 28,840 crore rupee outlay over the next ten years, the plan attempts to fix the recurring turbulence of the past. But the question remains whether this is a genuine fresh takeoff or just a continuation of the same structural problems.
The Pattern of Promise and Fade
The CAG audit reveals a stark Promise and Fade pattern in previous UDAN phases. Out of 774 awarded routes, 52% never commenced operations, and a mere 7% remained sustainable beyond the initial subsidy period. Financial oversight was equally fragile; the government invested ₹1,089 crore in 83 aerodromes that are now unutilized or under-utilized.
These systemic shortfalls were compounded by significant infrastructure delays and a lack of rigorous verification for airline subsidy claims. Ultimately, previous phases proved that constructing runways is insufficient without addressing the underlying economic demand required for long-term operational survival.
The Modified UDAN scheme seeks to address these systemic patterns of “fade” by extending Viability Gap Funding (VGF) from three years to five years. To prevent airports from becoming ghost terminals, the government has introduced Operation and Maintenance (O&M) support for approximately 441 aerodromes, capped at ₹3.06 crore annually per airport for the first three years.
With a total outlay of ₹28,840 crore, the plan also includes funding for indigenous aircraft like the HAL Dornier to solve the shortage of small planes for remote areas. This is a strategic shift designed to build a self-sustaining aviation ecosystem rather than just launching temporary routes
Why Modifying Was Essential, And How It Helps
Past UDAN phases proved the core idea works where demand exists, like tourism hubs in Uttarakhand or business links in Gujarat. Over one crore passengers flew affordably, sparking local economies with jobs in hospitality and trade. Remote islands and hills got lifelines for medical emergencies and fresh produce markets.
Modification was critical to break the cycle. It allocates ₹12,159 crore for 100 airports from unserved airstrips and ₹3,661 crore for 200 modern helipads. To ensure sustainability, the government provides Operation and Maintenance support for roughly 441 aerodromes, capped at ₹3.06 crore annually per airport.
Furthermore, Viability Gap Funding is extended to five years, with a tapered mechanism encouraging progressive commercial independence. By funding indigenous HAL aircraft, the scheme matches transport modes to actual geography while deepening connectivity to Tier-2 cities
Elite Bypass or True Regional Lift?
Here’s the real test: will subsidies truly serve forgotten corners, or prop up routes near big cities? Earlier phases favored spots with ready crowds, like religious circuits, while Bihar airstrips gathered dust. Only 43% of routes worked, per 2023 reports, and viability stayed low outside tourist zones.
Modified UDAN fights this with targeted support for unserved strips and heliports. But patterns worry: without real-time tracking, funds might flow to viable spots again. CAG flagged infra delays; now O&M caps at Rs 3 crore per airport yearly aim to fix that. Consumers in Jharkhand or Andamans deserve routes that last, not three-year teasers.
A Chance to Soar Higher
UDAN’s next phase is less about ambition and more about execution. Extending timelines and adding O&M support signals a shift away from short-term optics toward structural fixes. If implemented well, expanded regional infrastructure could unlock tangible gains, from faster movement of goods to improved access for underserved communities.
But credibility will depend on transparency and discipline. Without real-time monitoring and accountability, the same patterns of concentration and underuse could re-emerge. Modified UDAN is not a guaranteed turnaround, but it is a more informed iteration. Whether it delivers lasting connectivity or repeats past cycles will ultimately depend on how rigorously these reforms are enforced.
The Logical Indian’s Perspective
Public policy must ultimately serve people, not just projections. The UDAN scheme reflects an important aspiration, to democratize air travel and connect underserved regions. However, intent must be matched with accountability, transparency, and grounded execution.
Sustainable connectivity should uplift remote communities, not reinforce existing inequalities. A data-driven, inclusive approach that prioritizes long-term viability over short-term optics is essential to ensure equitable growth and meaningful national integration.
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