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UDAN scheme — citizen guide to RCS + Modified UDAN airfare caps (2026)

UDAN scheme citizen guide 2026 — Rs 2,500 airfare cap, 665+ routes, 1.64 crore passengers, Modified UDAN Rs 28,840 cr 10-year extension. How to fly cheap & file RTI.

UDAN scheme — citizen guide to RCS + Modified UDAN airfare caps (2026)

UDAN — RTI Wiki citizen guide

⚠️ DPDP Rules, 2025 (14 Nov 2025) amended Section 8(1)(j) of the RTI Act — public-interest override now under Section 8(2). Read the note →

· 2026/04/19 05:02

Quick answer. UDAN stands for Ude Desh ka Aam Nagrik — “let the common citizen of the country fly”. It is the Regional Connectivity Scheme (RCS) of the Ministry of Civil Aviation, Government of India, launched in 2016 under the National Civil Aviation Policy 2016. The scheme caps airfare at an indicative Rs 2,500 for a 500–600 km flight (indexed for inflation since 2016 — the equivalent cap in 2026 is around Rs 4,150), bridges the airline's loss with Viability Gap Funding (VGF) for up to 50% of seats / 40 seats per flight for 3 years, and unlocks underserved or completely unserved airstrips with a Centre + State + airport-operator concession stack. As on 31 March 2026, 665+ routes are operational, 95+ aerodromes activated, 10 airline operators onboard, 1.64 crore passengers have flown, and 3.45 lakh flights completed. The Union Cabinet on 25 March 2026 approved the Modified UDAN scheme — a 10-year extension (FY 2026-27 to FY 2035-36) with a total outlay of Rs 28,840 crore, targeting 120 new destinations and 4 crore additional passengers over the decade. The scheme funds 100 new airports (Rs 12,159 cr), 200 modern helipads in hilly + North-East + Aspirational districts (Rs 3,661 cr), 3-year O&M support (Rs 2,577 cr), tapered VGF for airlines into Year 4 and Year 5 (Rs 10,043 cr), and Aatmanirbhar Bharat aircraft acquisition (HAL Dhruv + HAL Dornier, Rs 400 cr) for remote routes. This guide explains UDAN in plain language, lists the 14 bidding cycles, the eligibility test, how citizens benefit, how state governments propose new airstrips, and how to file an RTI to MoCA / AAI / state PWD if a route fails to launch.

UDAN at a glance — six key features

The infographic. Six legs hold the UDAN scheme upright. Take any one away — the airfare cap, the VGF, the state contribution, the levy, the concession stack, or the exclusivity period — and the economics break for the small-aircraft regional carrier.

# Feature How it works
1 Market-linked bidding Two-stage bid — airlines themselves propose routes / networks. Quarterly indexation of airfares + VGF.
2 Affordable airfare cap Indicative Rs 2,500 for 500 km stage length in 2016, indexed quarterly for inflation — ~Rs 4,150 in 2026. Helicopters carry a higher cap.
3 Viability Gap Funding (VGF) VGF for 50% of seats, up to 40 seats per flight, for 3 years of operation.
4 State Government share 10% / 20% of VGF depending on state category (NE/UT/hilly states pay 10%, others 20%). State also gives land for free / concessional rates + free security + fire services.
5 Self-financing model Funded by a Regional Connectivity Fund (RCF) levy on domestic flights — currently ~Rs 6,500 per flight, levied on flights over 80 seats. Initial Centre corpus: Rs 600 cr.
6 Exclusivity period 3 years of route exclusivity for the winning bidder. After this, no VGF / concessions; route runs on commercial economics.

Concession stack (over and above the VGF):

  • By Central Government2% Excise Duty on ATF at RCS-listed airports for 3 years from route commencement.
  • By State Government1% VAT on ATF at RCS airports for 10 years; free land for airport development; free security & fire services; concessional electricity / water / utilities; 10–20% VGF share.
  • By Airport OperatorsNo landing or parking charges on RCS flights; no Terminal Navigation & Landing charges; Route Navigation & Facilitation Charges at 42.5% of normal rates; self-ground-handling permitted; exemption on UDF (User Development Fee) and ASF (Aviation Security Fee).

The flight path — 14 bidding cycles in 9 years

UDAN has run through five major versions across 14 bidding cycles, each adding a feature without breaking the underlying economics.

Version Year What was added
UDAN 1.0 2017 Scheme kickstarted; concept validated; strong airline participation
UDAN 2.0 2018 Priority Areas — Himalayan states, Island states / UTs, North-East states
UDAN 3.0–3.1 2018–19 Seaplane routes + water aerodromes added
UDAN 4.0–4.3 2020–22 Small Aircraft Sub-Scheme for first / last-mile connectivity + land-constrained aerodromes
UDAN 5.0–5.5 2023–25 Aircraft size / type-wise bidding cycles to optimise airport infrastructure utilisation

Impact as on 31 March 2026 (consolidated MoCA figures)

  • 665+ routes operationalized across India
  • 95+ aerodromes operationalized (mix of airports, heliports and water aerodromes)
  • 10 airline operators participating
  • 1.64 crore passengers flown
  • 3.45 lakh flights completed
  • Substantial central spend on aerodrome development and on Viability Gap Funding to airlines

UDAN airlines

A small set of dedicated regional carriers + select mainline airlines fly UDAN routes — Alliance Air, Star Air, Pawan Hans (helicopters), Flybig, SpiceJet, Fly91, IndiGo, Heritage Aviation, IndiaOne Air, and Air Taxi. The aircraft mix is deliberately sized for short, regional hops — turboprop ATRs, Embraer regional jets, Dornier 228, Twin Otters, and helicopters dominate; Boeing 737 / A320 mainline aircraft are deployed only on select longer RCS-eligible routes.

Modified UDAN scheme — what changed on 25 March 2026

The Union Cabinet approved the Modified UDAN Scheme on 25 March 2026 for a 10-year period (FY 2026-27 to FY 2035-36) with a total outlay of Rs 28,840 crore. 120 new destinations are targeted; 4 crore additional passengers are projected to fly under UDAN over the decade. The scheme also explicitly funds helipads + smaller airports in hilly, Aspirational and North-East Region districts.

Five things the Modified UDAN funds

  1. Airport development under “Challenge Mode” — about 100 new airports at roughly Rs 100 crore each, over 8 years, aligned with Viksit Bharat 2047.
  2. Modern helipads — about 200 modern helipads in HINER (Hilly + North-East Region) states and Aspirational districts.
  3. Three-year O&M support — manpower salary cost (CNS/ATM and IMD) at RCS aerodromes for the first three years of operation.
  4. VGF extension into Year 4 and Year 5 with a tapered model — Year 3 at 75% of awarded VGF, Year 4 at 50%, Year 5 at 25%. Earlier UDAN cut off at the end of Year 3.
  5. Aatmanirbhar Bharat aircraft acquisition — funding for indigenous aircraft (HAL Dhruv helicopters for PHL; HAL Dornier aircraft for Alliance Air) to serve remote routes.

Two big design changes:

  1. Tapered VGF into Years 4 and 5 — earlier UDAN cut VGF cliff-edge at end of Year 3. The Modified UDAN gives the route 5 years to mature, with declining government support — long-term sustainability of routes is the explicit objective.
  2. Challenge Mode for new airports — instead of waiting for airline interest, the Modified scheme invites State Governments to nominate aerodromes based on land availability, infrastructure readiness, and facilitation commitments. This puts the state in the driver's seat for which districts get connected.

What this means for citizens

  • More small towns will get a regional flight — 120 new destinations is a real number; for the first time, hundreds of district HQs may get scheduled flights.
  • Helipads become standard infrastructure — 200 modern helipads in hilly / NE / Aspirational districts means the Pawan Hans-style emergency-response + tourist routes become routinely available.
  • Indigenous aircraft (HAL Dornier + HAL Dhruv) flying citizen passengers — an Aatmanirbhar Bharat outcome that's directly visible at the airport gate.
  • Routes are more likely to survive past Year 3 — the cliff-edge VGF cut had killed several routes after exclusivity ended; the tapered model gives Year-4 / Year-5 a fighting chance.

How a citizen actually books a UDAN flight

  1. Search the airline's website or any major OTA (MakeMyTrip, Cleartrip, Yatra, Goibibo) for the route. UDAN routes show up as regular flights — the airfare cap is automatically applied to the first 50% of the seats under VGF.
  2. Book early — VGF-supported seats sell out fastest; once they go, the airline can charge market rates on the remaining 50%.
  3. Carry your photo ID for the security check — same as any domestic flight.
  4. Smaller aircraft = stricter baggage limits — usually 15 kg checked + 7 kg cabin for ATR / Dornier; helicopters cap at 5–10 kg total. Check the airline page.
  5. Most RCS routes are once-daily or alternate-day — schedule build-up takes 2–3 quarters after route launch.
  6. No special UDAN portal / login is needed — book like any other domestic flight.

When can a citizen file an RTI on UDAN?

Three concrete situations:

  1. Promised route never launched — an airline won the bid, the airport was upgraded, but the flight never started. RTI to MoCA / AAI / State Aviation Department asking the awarded-route status, the operationalisation order, and the reasons recorded for non-launch.
  2. Route was withdrawn within the 3-year exclusivity period — RTI for the withdrawal-reason file noting + VGF-clawback status.
  3. Your district airstrip / helipad sat unused — Modified UDAN promises 100 airports + 200 helipads. RTI to the state PWD / State Aviation Cell asking whether your district has been nominated under the Challenge Mode + the supporting-detail file (land, infrastructure readiness, facilitation commitments).

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Question PIO target
Awarded route + operationalisation status PIO, Ministry of Civil Aviation (MoCA), Rajiv Gandhi Bhawan, New Delhi
Aerodrome / airport development status PIO, Airports Authority of India (AAI), Headquarters, New Delhi
State-side land + concessions PIO, State Aviation / Tourism / PWD Department
Specific airport's RCS budget + utilisation PIO, Project Implementation Unit at the concerned airport — AAI Regional Office
VGF disbursal to airline PIO, MoCA — Regional Connectivity Cell
Helipad / Aspirational-district nomination PIO, State Aviation Department + district DC office

Pro tips most don't know

  • The airfare cap applies only to RCS seats (typically half the aircraft). The other half of the seats can be sold at market rates — that's how the airline funds non-VGF revenue.
  • The Rs 2,500 figure is from 2016. It is indexed quarterly to inflation. The 2026 equivalent for a 500–600 km flight is around Rs 4,150.
  • The RCF Levy on domestic flights funds UDAN — about Rs 6,500 per departing flight on aircraft above 80 seats is collected by airlines and remitted to the central UDAN corpus. RCS routes themselves and aircraft below 80 seats are exempt from this levy.
  • Seaplane and water-aerodrome routes were added in UDAN 3.0 — Lakshadweep, Andaman & Nicobar, parts of the Western Ghats coast operate on this leg.
  • Helicopters carry a higher fare cap than fixed-wing aircraft — necessary because helicopter operating costs are 3–4× a turboprop's.
  • Routes lapse if not flown for a sustained period under the operations-and-maintenance clause. This is what triggers the VGF clawback and is one of the most common citizen-grievance triggers.
  • State Government's choice of airport matters. Under Modified UDAN's Challenge Mode, the state's nomination decides which districts get connected — it's not a centrally-pushed list any more.
  • Aatmanirbhar Bharat = visible aircraft change. By 2030 you should see HAL Dorniers on Alliance Air's RCS routes and HAL Dhruvs on PHL's — currently most of the fleet is imported.

Frequently asked questions

What does "UDAN" actually stand for?

Ude Desh ka Aam Nagrik — “let the common citizen of the country fly”. It is the slogan; the scheme name is the Regional Connectivity Scheme (RCS).

Who is eligible to fly UDAN?

Anyone who buys a ticket on an RCS route. UDAN doesn't gate eligibility by income, occupation, or domicile — the scheme works by capping the airfare on the route, not by means-testing the passenger. Senior-citizen / armed-forces / student concessions are at the airline's discretion (separate from RCS).

Is UDAN free or subsidised for poor citizens?

No — it's a subsidised airfare cap, not a free flight. You pay the capped fare (around Rs 4,150 for 500–600 km in 2026), the airline gets the difference between that and its operating cost as VGF from the government.

How is the airfare cap enforced?

The airline files the Bid Airfare during the two-stage bidding. The fare cap applies to 50% of seats up to a maximum of 40 seats per flight — these are the RCS seats. The remaining seats are market-priced. The airline must publicly disclose RCS seats per flight; you can ask AAI for compliance data.

Does UDAN cover international flights?

No. UDAN is domestic regional connectivity only. International UDAN was discussed in 2017 but has not become an active sub-scheme. Domestic seaplane + water-aerodrome routes are part of UDAN 3.0+.

My district doesn't have an airstrip — can my MP / MLA push for one?

Yes — under the Challenge Mode of the Modified UDAN, the State Government nominates airport candidates with land availability + infrastructure readiness + facilitation commitments. Your MP / MLA writing to the State Aviation Cell + the State Tourism Department is the most effective lever. RTI to the State PWD asking the current district nomination status forces a written file response.

What if the airline cancels a UDAN route I depend on?

Routes have a 3-year exclusivity with declining VGF in Year 4 (50%) and Year 5 (25%) under the Modified scheme. If a route is withdrawn within exclusivity, file an RTI to MoCA + AAI asking the withdrawal reasons + VGF clawback status. The state can also re-bid the route under the next UDAN cycle.

Can a private airline simply choose to run a route without UDAN?

Yes — many routes operate on commercial economics. UDAN is a subsidy + concession stack for routes that wouldn't otherwise be commercially viable. It's optional for the airline.

What's the difference between UDAN airports and ordinary airports?

Operationally, none for the passenger. UDAN airports often have smaller terminals and limited services (lower cost basis is the point), but security, baggage rules, and boarding work the same. UDF and ASF are exempt for RCS flights — so the airport-fee component of your ticket is lower.

Can a citizen travel cargo + passenger on a UDAN flight?

Cargo policy is at the airline's discretion. Small-aircraft UDAN flights have very strict baggage limits (often 15 kg checked + 7 kg cabin) — pure-cargo capacity is limited. Helicopters cap even tighter (5–10 kg total). If you need to ship a perishable, ask the airline directly.

Helipads — when does UDAN cover them?

UDAN 3.0 onwards explicitly covers helicopter routes. The Modified UDAN dedicates Rs 3,661 crore for 200 modern helipads in HINER (Hilly + NER) states and Aspirational districts. PHL operates many of these routes today.

I want the full UDAN policy document — where is it published?

The National Civil Aviation Policy (NCAP) 2016 sets out the RCS provisions. The operational scheme document for UDAN is published by MoCA at civilaviation.gov.in and is updated with each amendment / cycle. The Modified UDAN Cabinet Note of 25 March 2026 is announced via PIB and CCEA press releases.

Where do I see the list of currently-operational UDAN routes?

AAI's Regional Connectivity Cell publishes the list of awarded routes + operationalised routes quarterly. The DGCA aviation statistics monthly bulletin also shows passenger numbers by route.

Citizen-action checklist

  1. [ ] Check your nearest UDAN airport — search “UDAN airports in [your state]” on civilaviation.gov.in
  2. [ ] If a route was promised but didn't launch, file an RTI to MoCA + AAI
  3. [ ] If your district lacks an airstrip, push your State Aviation Cell for a Challenge Mode nomination
  4. [ ] Bookmark PHL for helicopter routes if you live in Hilly / NER / Aspirational district
  5. [ ] Check the Aatmanirbhar Bharat aircraft delivery schedule — HAL Dornier + HAL Dhruv timing
  6. [ ] Save the Voter / Aadhaar / Driving Licence ID as photo ID for boarding (same as any domestic flight)
  7. [ ] Read the airline's baggage limit page before booking small-aircraft flights — stricter than mainline carriers
  8. [ ] If a route is being withdrawn within 3-year exclusivity, file the RTI within 30 days of the withdrawal notice

What this scheme is NOT

  • Not a means-tested subsidy — anyone can book a UDAN seat at the capped fare; it's not restricted to BPL / SC / ST.
  • Not a free-flight scheme — you pay the capped fare. The government bridges the airline's loss.
  • Not centrally pushed — airlines bid for the routes they want; the state nominates the aerodromes; the centre matches funding.
  • Not permanent for any single route — VGF is 3 years (5 in Modified UDAN, tapered). Routes that don't survive on commercial economics may eventually close.

Sources

  • Ministry of Civil Aviation, Government of India — public Regional Connectivity Scheme (RCS-UDAN) statistics and policy publications.
  • National Civil Aviation Policy (NCAP), 2016 — RCS provisions on affordable airfares, RCF levy, airport development, VGF.
  • Regional Connectivity Scheme (RCS) — UDAN, Operational Document and amendments — Ministry of Civil Aviation.
  • Cabinet Committee on Economic Affairs press release, 25 March 2026 — approval of Modified UDAN scheme, FY 2026-27 to FY 2035-36, total outlay Rs 28,840 crore.
  • Airports Authority of India — RCS quarterly statistics on routes, aerodromes, passengers, and VGF disbursal.
  • The Right to Information Act, 2005 — Sections 4(1)(b)(xii), 6(1), 6(3), 7(1), 7(2), 7(5), 7(6), 8(1), 10, 19(1), 19(3), 20.
  • Hindustan Aeronautics Limited (HAL) — Dhruv helicopter and Dornier 228 aircraft programme briefs (Aatmanirbhar Bharat acquisition note).
  • MoCA Helpline / AAI portal — civilaviation.gov.in + aai.aero.

{REVIEWED}

Last reviewed: 4 May 2026 — RTI Wiki editorial team. All scheme citations verified against publicly published MoCA / CCEA scheme communications and NCAP 2016. Only consolidated public scheme figures and policy descriptions are used.