Modified UDAN Scheme: MoCA Signs 21 MoUs with States/UTs, Launches Challenge Mode Portal for Aerodrome Development
The Ministry of Civil Aviation (MoCA) and the Airports Authority of India (AAI) signed 21 Memoranda of Understanding (MoUs) with States and Union Territories on September 22, 2026, in the presence of Union Civil Aviation Minister Ram Mohan Naidu, for the next phase of the UDAN (Ude Desh ka Aam Naagrik) regional connectivity scheme. The Minister simultaneously launched the "Challenge Mode Portal for Aerodrome Development," enabling States/UTs to nominate airstrips and helipads for development under the Modified UDAN scheme.
At a glance
MoCA and AAI signed 21 MoUs with States/UTs on Sept 22, 2026 for Modified UDAN scheme. Civil Aviation Minister Ram Mohan Naidu also launched the Challenge Mode Portal for Aerodrome Development.
UDAN = Ude Desh ka Aam Naagrik. India's Regional Connectivity Scheme (RCS) launched Oct 21, 2016 under NCAP 2016. Makes air travel affordable via capped fares (~₹2,500/hr) and Viability Gap Funding to airlines.
100 new airports from unserved airstrips; 200 modern helipads in hilly/remote/island/aspirational regions (₹3,661 cr); ₹10,043 cr Viability Gap Funding over 10 years for airline operators.
New digital platform: States/UTs nominate airstrips/helipads for development. Competitive scoring on connectivity gap, demand, State commitment, and infrastructure readiness replaces administrative allocation.
Timeline
Why in News
The Ministry of Civil Aviation (MoCA) and the Airports Authority of India (AAI) signed 21 Memoranda of Understanding (MoUs) with States and Union Territories on September 22, 2026, to support the next phase of the regional air connectivity scheme UDAN (Ude Desh ka Aam Naagrik — "Let the Common Citizen Fly"). The event, presided over by Union Civil Aviation Minister Ram Mohan Naidu, also saw the launch of the Challenge Mode Portal for Aerodrome Development — a new digital platform through which State and UT governments can nominate airstrips and helipads for development under the Modified UDAN scheme. The initiative reflects the government's commitment to expanding regional air connectivity beyond the major metros to Tier-2, Tier-3 cities, hilly regions, remote areas, and island territories.
Background
UDAN Scheme — Origin and Evolution
UDAN (Ude Desh ka Aam Naagrik) is India's flagship Regional Connectivity Scheme (RCS), launched on October 21, 2016, under the National Civil Aviation Policy (NCAP) 2016. The scheme's core objective is to make air travel affordable and accessible to the common citizen by connecting unserved and underserved airports, airstrips, and helipads across India, particularly in remote, hilly, island, and aspirational regions.
| Phase | Year | Key Features |
|---|---|---|
| UDAN 1.0 | 2017 | First flights under RCS; 70 routes; 5 airlines; capped fares ₹2,500 for 1-hour flight |
| UDAN 2.0 | 2018 | Expanded to small airports; seaplane routes introduced; 73 new airports |
| UDAN 3.0 | 2019 | Tourism routes, water aerodromes; 24 new airports |
| UDAN 4.0 | 2020 | Helicopter routes, priority to NE states; 392 routes awarded |
| UDAN 4.1 | 2021–22 | Helicopter routes for hilly/remote regions |
| Modified UDAN | 2023–2026 | Revised framework; 100 new airports from unserved airstrips; 200 modern helipads; Rs 3,661 cr for helipads; Rs 10,043 cr Viability Gap Funding over 10 years |
National Civil Aviation Policy (NCAP) 2016
NCAP 2016 was India's first-ever civil aviation policy, providing a comprehensive framework for the growth of the aviation sector. It set the target of 300 operational airports by 2022 (later revised), established the RCS-UDAN framework, and provided for Viability Gap Funding (VGF) shared between the Centre, States, and airlines.
Current Developments
21 MoUs with States/UTs — Scope
The MoUs signed on September 22, 2026 establish a formal framework of cooperation between MoCA-AAI and each signatory State/UT for:
- Identification of potential aerodrome sites (unserved airstrips, abandoned airfields, helipad locations) within the State.
- Land provision and clearance by the State government for aerodrome development.
- Cost-sharing arrangements for aerodrome infrastructure development.
- Co-ordination on environmental, local planning, and security clearances required for new aerodrome development.
- Promoting demand for air services among local populations to ensure route viability.
Challenge Mode Portal for Aerodrome Development
The Challenge Mode Portal, launched alongside the MoU signing, introduces a competitive, demand-driven mechanism for aerodrome prioritisation:
- How it works: State/UT governments and local bodies can nominate airstrips and helipads on the portal, providing data on existing infrastructure, potential passenger demand, and commitment to provide land/clearances.
- Competitive scoring: Nominations are ranked by criteria including aviation connectivity gap, regional development potential, State government commitment, and infrastructure readiness.
- Benefit: Ensures limited development funds are directed to locations with the highest readiness and impact potential, replacing a purely administrative allocation process.
Modified UDAN — Infrastructure Targets
| Component | Target | Budget |
|---|---|---|
| New airports from existing unserved airstrips | 100 airports | Central development funding |
| Modern helipads in hilly/remote/island/aspirational areas | 200 helipads | ₹3,661 crore |
| Viability Gap Funding for airline operators | 10-year period | ₹10,043 crore |
Key Facts
- UDAN = Ude Desh ka Aam Naagrik ("Let the Common Citizen Fly").
- Launched: October 21, 2016 under National Civil Aviation Policy 2016.
- Nodal ministry: Ministry of Civil Aviation (MoCA); implementing agency: AAI (Airports Authority of India).
- Under UDAN, ticket prices on selected routes are capped (approximately ₹2,500 for a one-hour flight in early phases).
- VGF (Viability Gap Funding): Subsidy paid to airlines to compensate for the difference between operational costs and the capped fare revenue; shared between Centre (80%), States (20%), and airlines (who also contribute by offering subsidised seats).
- AAI shares: Centre (60%), State (40%) for VGF in hilly/NE/island states (revised ratios have evolved across phases).
- Under UDAN, over 590 routes have been awarded and more than 70+ airports have been connected since 2017.
- The scheme has carried over 1.5 crore passengers on UDAN routes cumulatively (as of 2025).
- Civil Aviation Minister: Ram Mohan Naidu Kinjarapu (as of 2026).
- AAI is a statutory body under the Airports Authority of India Act, 1994, responsible for creating, upgrading, maintaining, and managing civil aviation infrastructure in India.
Constitutional Provisions
- Entry 29, Union List (Seventh Schedule): Airways, aircraft and air navigation; provision of aerodromes; regulation and organisation of air traffic and of aerodromes — exclusively a Central Government subject.
- Article 19(1)(d): Right to move freely throughout the territory of India — affordable air connectivity directly advances this right for citizens in remote/hilly regions.
- Article 38 (DPSP): State shall secure a social order for the promotion of the welfare of the people — UDAN's social equity dimension aligns with this directive.
- Article 15(2) (read broadly): No discrimination in access to public infrastructure — regional air connectivity reduces the infrastructure gap between metro and non-metro India.