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₹28,840 Cr Revamped UDAN Scheme Approved; VGF of ₹10,043 Cr for 10 Years, Funding Shift from Levy to Exchequer

EconomyInfrastructurePolityHIGH
Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
25 Mar 2026
~2 min
Source: The Hindu
Key Data:₹28,840 crore₹10,043 crore VGF100 airports200 helipads₹3,661 crore for helipads₹12,159 crore for airport redevelopment
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What This Article Covers

1.Cabinet approves revamped UDAN scheme with total outlay of ₹28,840 crore, a nearly six-fold increase over the earlier allocation.

2.Funding model shifts from Regional Connectivity Scheme (RCS) levy on non-UDAN passengers to direct government subsidy, with ₹10,043 crore allocated for Viability Gap Funding (VGF) over 10 years.

3.Strategic focus on airport redevelopment, Operations & Maintenance (O&M) support, and last-mile connectivity through helipads in difficult terrains.

The Big Picture
Prelims · HighMains · Medium

The Union Cabinet has approved a major expansion of the UDAN (Ude Desh ka Aam Naagrik) regional connectivity scheme with a six-fold budget increase to ₹28,840 crore. The key reform shifts the subsidy funding model from a passenger levy to direct government expenditure, aiming to enhance viability and expand airport and helipad infrastructure nationwide.

Exam Lens

Quick Exam Facts From News

Total Outlay₹28,840 crore
Viability Gap Funding (VGF)₹10,043 crore (10 years)
Airports to be Redeveloped100 airports
Helipads Proposed200 helipads

1-Minute Revision

  • ›Total Outlay: ₹28,840 crore
  • ›Viability Gap Funding (VGF): ₹10,043 crore (10 years)
  • ›Target this Data: Total outlay of ₹28,840 crore and VGF of ₹10,043 crore over 10 years.
  • ›Target this Nodal Body: Ministry of Civil Aviation (responsible for UDAN scheme).
  • ›Target this Policy Shift: Funding model change from RCS levy to direct government subsidy.

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Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which ministry is primarily responsible for the implementation of the UDAN (Regional Connectivity Scheme)?

Q2Statement-basedHard

Consider the following statements regarding the revamped UDAN scheme:

1. The total outlay for the revamped scheme is ₹28,840 crore, which is a nearly six-fold increase over the earlier allocation.

2. The subsidy to airlines will now be funded through a levy on passengers flying on non-UDAN routes, as per the earlier model.

3. The scheme proposes to develop 200 helipads with an estimated total investment of ₹3,661 crore.

Which of the statements given above is/are correct?

Q3Data-centricMedium

What is the allocated amount for Viability Gap Funding (VGF) to support regional routes under the revamped UDAN scheme, as per the news?

Q4Application/ImpactMedium

What is the primary objective of shifting the airline subsidy burden to the government exchequer in the revamped UDAN scheme?

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