Blitz Bureau
NEW DELHI: The sky, long seen as a symbol of aspiration, was once an unattainable dream for many in India. To bridge this gap, the Government launched the Regional Connectivity Scheme (RCS) – UDAN (Ude Desh ka Aam Nagrik) on October 21, 2016. Rooted in Prime Minister Narendra Modi’s vision that even a common man in slippers should be able to afford air travel, UDAN aims to democratise aviation by making flying accessible and affordable for all.
Implemented by the Ministry of Civil Aviation, this flagship scheme has since transformed India’s regional connectivity landscape. The dream of affordable air travel for the common citizen began to take tangible form with the first UDAN flight. This landmark flight took off on April 27, 2017, connecting the serene hills of Shimla to the bustling metropolis of Delhi. This landmark event, which marked the beginning of a transformative journey in Indian aviation, completed eight years in April 2025.
Ten-year vision
The UDAN scheme was conceptualised under the National Civil Aviation Policy (NCAP) 2016, with a 10-year vision, to connect Tier-2 and Tier-3 cities through a market-driven yet financially supported model. The scheme incentivised airlines through concessions and Viability Gap Funding (VGF) to operate on regional routes, ensuring affordable fares and improved accessibility.
The components of UDAN Scheme are: financial support to airlines to ensure affordable fares; Airfare Cap to ensure affordability; and collaborative governance between Centre, states, Airport Authority of India, and private airport operators.
The Government has implemented several supportive measures to attract airlines to operate flights in less lucrative markets.
Supportive steps
Airport Operators: They waive landing and parking charges for RCS flights, and the Airports Authority of India (AAI) does not levy Terminal Navigation Landing Charges (TNLC) on these flights. Moreover, a discounted Route Navigation and Facilitation Charge (RNFC) is applied.
ATF excise cap: For the first three years, excise duty on Aviation Turbine Fuel (ATF) purchased at RCS airports is capped at 2 per cent. Airlines are also encouraged to enter code-sharing agreements to expand their reach. States cut VAT: States have committed to reducing VAT on ATF to 1% or less for ten years and providing essential services such as security, fire services, and utility services at reduced rates.
This collaborative framework has fostered an environment where airlines can thrive while serving regions that have long been overlooked. Since its launch in 2016, the UDAN scheme has evolved through multiple rounds, each expanding India’s regional air connectivity scope and scale. UDAN is more than a policy, it’s a transformative movement that has redefined the aviation narrative in India. By bridging the skies between Bharat and India, the scheme has made the dream of affordable air travel a reality for millions.
