19 States Sign UDAN MoUs for 100 Airports
19 States Sign UDAN MoUs for 100 Airports
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Key Points
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The previous decade of UDAN resulted in more than 80 airports being built and provided affordable air travel to approximately 1.54 crore passengers, according to Civil Aviation Minister Rammohan Naidu.
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Challenge Mode is intended to accelerate airport construction, with the government targeting an 18-month completion timeline instead of the earlier average of two to three years.
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The revised scheme allocates ₹12,159 crore for developing 100 airports and ₹2,577 crore for operational and maintenance assistance covering about 441 aerodromes.
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Of the overall funding, ₹10,043 crore is earmarked over 10 years for airline operators through viability-gap support, aimed at sustaining routes that are initially commercially unviable in sparsely populated areas.
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The modified framework extends airline support from three years to five years and broadens eligibility for viability-gap funding, reflecting the government’s effort to improve the long-term viability of regional routes.
India is launching a revamped regional aviation program that will invest ₹29,000 crore to build 100 new airports and connect 120 destinations over the next decade. Civil Aviation Ministry has signed 21 memorandums of understanding (MoUs) with states and union territories, shifting the UDAN scheme from heavy subsidies toward commercially sustainable routes that serve up to four crore passengers.
A Decade of UDAN Lays the Foundation
The previous 10 years of UDAN built more than 80 airports and brought affordable air travel to roughly 1.54 crore passengers, according to Civil Aviation Minister Rammohan Naidu. The program proved that regional aviation could work but revealed gaps: airport construction took two to three years on average, and many routes struggled financially without long-term support.
Fast-Tracking Airport Construction With Challenge Mode
The new phase introduces Challenge Mode, a competitive bidding system designed to speed up development. The government targets an 18-month completion timeline for new airports—cutting construction time in half compared to earlier averages. Swarajya Mag reports that this mechanism gives states greater control over selecting high-potential airstrips and aerodromes for immediate expansion.
Breaking Down ₹29,000 Crore in Funding and Support
The central government will allocate ₹12,159 crore to develop 100 airports and ₹2,577 crore for operational and maintenance assistance across roughly 441 aerodromes. An additional ₹10,043 crore over 10 years will go to airlines through viability-gap support—essentially subsidizing routes that lose money in sparsely populated regions.
Airline support has been extended from three years to five years, and eligibility for subsidies has broadened. This shift reflects the government's push to ensure routes in remote, hilly, and island areas remain viable long-term, The Hans India reports.
States and Center Share Infrastructure Responsibilities
Under the new framework, states and union territories must supply land, surface connections, utilities, and security for airports. The center provides financing, policy guidance, and oversight. Asia Net News notes that this partnership model aims to accelerate project delivery by distributing responsibility across government levels while ensuring local infrastructure supports sustainable air connectivity.
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