Centre signs MoUs with 21 States for next phase of UDAN
The Ministry of Civil Aviation signed Memoranda of Understanding (MoUs) with 21 states and union territories for the next phase of the Regional Connectivity Scheme (RCS)-UDAN
The next phase uses a "Challenge Mode" for airport and heliport selection, under which states nominate airstrips and helipads for development through a dedicated portal
The revised process aims to cut construction time for selected airports to about 18 months, down from up to three years under the earlier approach
The phase includes a target of developing 200 heliports, with emphasis on hilly, northeastern, and island states
RCS-UDAN — Origin and Objective
UDAN ("Ude Desh ka Aam Nagrik") is the Regional Connectivity Scheme launched under the National Civil Aviation Policy (NCAP), 2016, to make air travel accessible and affordable by connecting underserved and unserved airports, largely in tier-2 and tier-3 towns.
Key Details
- Launched on 21 October 2016 by the Ministry of Civil Aviation, with an original 10-year vision
- Core instrument is Viability Gap Funding (VGF) to airlines operating on unprofitable regional routes, combined with a cap on airfares for a defined share of seats on RCS routes
- Airlines bid competitively for routes; in return they receive VGF support and various concessions (reduced airport charges, service tax relief, etc.)
- As of recent official data, the scheme has connected dozens of previously unserved/underserved airports, heliports, and water aerodromes across the country
The MoUs signed with 21 states extend this same connectivity objective into a new phase, with faster infrastructure development and a larger heliport component.
Modified UDAN — Financing Shift and Outlay
The current phase operates under the "Regional Connectivity Scheme – Modified UDAN," approved by the Union Cabinet for a 10-year period, which changes how the scheme is financed compared to the original UDAN.
Key Details
- Modified UDAN was approved with a total outlay of approximately ₹28,840 crore for FY 2026-27 to FY 2035-36
- The original scheme's VGF was financed through the Regional Connectivity Fund (RCF), built from a per-departure levy (most recently around ₹6,500 per flight) on non-RCS domestic flights, so well-trafficked routes cross-subsidised smaller ones
- Under Modified UDAN, VGF and airport development funding shift to direct budgetary support from the Government of India rather than relying solely on the levy-based RCF model
- The scheme envisages developing around 100 airports from existing unserved airstrips, alongside the heliport expansion
The 21 state MoUs operationalise the Modified UDAN outlay at the state level, translating the Cabinet-approved financing shift into ground-level infrastructure agreements.
Challenge Mode and Cooperative Federalism in Infrastructure Selection
"Challenge Mode" refers to a competitive, demand-driven selection process where states themselves nominate sites for development, replacing a more centralised, top-down site-identification approach.
Key Details
- States and union territories nominate airstrips and helipads for development through a dedicated portal run by the Ministry of Civil Aviation
- This decentralised nomination process is intended to align site selection with local demand and state-level land/infrastructure readiness, since land acquisition and local clearances are state subjects
- The approach mirrors similar "challenge method" competitive selection processes used in other central infrastructure schemes (e.g., Smart Cities Mission) to speed up implementation by incentivising state-level preparedness
The signing of MoUs with 21 states is the formal step through which this Challenge Mode nomination process is institutionalised across most of India's states and union territories.
Heliports and Connectivity to Difficult Terrain
The 200-heliport target specifically targets hilly, northeastern, and island regions, where conventional runway-based airports are constrained by terrain.
Key Details
- Heliports require significantly less land and gestation time than fixed-wing airports, making them suited to hill states, the Northeast, and island territories such as the Andaman & Nicobar and Lakshadweep
- Earlier UDAN phases have already connected a number of heliports in hilly and northeastern states as part of the broader unserved/underserved connectivity push
- Improved air connectivity to remote and difficult terrain also supports strategic and disaster-response objectives in border and island regions
The heliport-heavy design of this phase reflects a deliberate focus on connectivity gaps in terrain-constrained regions that fixed-wing UDAN airports have not been able to address.
- MoUs signed with 21 states/UTs for the next phase of RCS-UDAN
- Target construction time for selected sites: about 18 months (down from up to 3 years earlier)
- Heliport target under this phase: 200
- UDAN launched: 21 October 2016, under NCAP 2016
- Modified UDAN outlay: approximately ₹28,840 crore over 10 years (FY 2026-27 to FY 2035-36)
- Original RCF levy on non-RCS domestic departures: last set at around ₹6,500 per flight