UDAN scheme: RCS and Modified UDAN airfare caps 2026

Last reviewed: 1 September 2026.

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 ₹2,500 for a one-hour / 500–600 km flight (a 2016 base figure, indexed quarterly for inflation), 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 28 February 2026, 663 routes are operational, 95 aerodromes (airports, heliports and water aerodromes) activated, airline operators onboard, 162.47 lakh passengers have flown, and over 3.41 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 ₹28,840 crore, targeting 120 new destinations and about 4 crore additional passengers over the decade. The scheme funds 100 new airports (₹12,159 crore over eight years), 200 modern helipads in hilly + North-East + island + Aspirational districts (₹15 crore each, ₹3,661 crore), 3-year O&M support (₹2,577 crore for around 441 aerodromes), VGF for airlines over a 10-year window (₹10,043 crore), and Aatmanirbhar Bharat aircraft acquisition (two HAL Dhruv helicopters for Pawan Hans + two HAL Dornier aircraft for Alliance Air) 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.

Concession stack (over and above the VGF):

• By Central Government — 2% Excise Duty on ATF at RCS-listed airports for 3 years from route commencement.
• By State Government — 1% 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 Operators — No 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).

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

• many routes operationalized across India
• many aerodromes operationalised (mix of airports, heliports and water aerodromes)
• several airline operators participating
• a substantial number of passengers flown
• a large volume of flights completed
• Substantial central spend on aerodrome development and on Viability Gap Funding to 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.

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 ₹28,840 crore. 120 new destinations are targeted; about 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.

1. Airport development under “Challenge Mode” — about 100 new airports through a challenge-based mode, with budgetary support of ₹12,159 crore over 8 years, aligned with Viksit Bharat 2047.
2. Modern helipads — about 200 modern helipads at ₹15 crore each (₹3,661 crore) in hilly, island, remote 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 for five years with a tapered model — airlines receive funding support for five years, with a tapered funding mechanism from the third year onward; exclusivity of operations stays at three years (₹10,043 crore over ten years). 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.

• More small towns will get a regional flight — 100 new airports 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.

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.

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 new airports + 200 modern 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).

→ Use the 🪄 AI RTI Drafter — paste your problem in plain English, get a complete §6(1) RTI letter in 60 seconds. Free, no login.

• 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 ₹2,500 figure is from 2016. It is indexed quarterly to inflation, so the operative cap on a 500–600 km flight today is higher than ₹2,500.
• The RCF Levy on domestic flights funds UDAN — about ₹6,000 per departing flight on aircraft of 80 or more 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.

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).

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).

No — it's a subsidised airfare cap, not a free flight. You pay the capped fare (the ₹2,500-per-hour 2016 baseline for a 500–600 km flight, since indexed), the airline gets the difference between that and its operating cost as VGF from the government.

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.

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+.

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.

Routes have a 3-year exclusivity with VGF support running five years on a taper from the third year onward 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.

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.

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.

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.

UDAN 3.0 onwards explicitly covers helicopter routes. The Modified UDAN funds 200 modern helipads at ₹3,661 crore in hilly / NER / island states and Aspirational districts. PHL operates many of these routes today.

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.

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.

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 asking for the withdrawal reasons and VGF-clawback status (no 30-day RTI deadline applies — RTI has no limitation period, but file early while records are fresh)

• 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.

• 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.
• Union Cabinet press release (PIB / PM India), 25 March 2026 — approval of Modified UDAN scheme, FY 2026-27 to FY 2035-36, total outlay ₹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.