Airports In India Increased from 74 to 157 in Last Decade Under UDAN Scheme

The Indian aviation sector has experienced a remarkable shift thanks to the UDAN (Ude Desh ka Aam Nagrik) initiative, with the number of operational airports surging from 74 in 2014 to an impressive 157 in 2024. The government has set an ambitious target to increase this figure to between 350 and 400 by the year 2047.

In the last decade, the domestic air passenger count has more than doubled, as Indian airlines have aggressively expanded their fleets. Launched by the Ministry of Civil Aviation (MoCA), the UDAN scheme aims to enhance regional air connectivity by focusing on unserved and underserved airports across the country, making air travel more affordable for the general public.

As it marks its seventh anniversary, UDAN exemplifies the Indian government's dedication to improving infrastructure and connectivity, particularly in remote regions. The ministry noted that regional carriers such as Flybig, Star Air, IndiaOne Air, and Fly91 have thrived under this scheme, developing sustainable business models and contributing to a vibrant ecosystem for regional air travel.

In a significant move for the industry, Indian airlines have placed orders for over 1,000 new aircraft, with deliveries scheduled over the next 10 to 15 years, significantly boosting the current fleet of around 800 planes. The first flight under the UDAN scheme took off on April 27, 2017, connecting the picturesque hills of Shimla with Delhi.

Operating on a market-driven approach, UDAN allows airlines to evaluate demand on specific routes and submit proposals during competitive bidding rounds. To encourage airlines to service less lucrative markets, the government has implemented various supportive measures, including waiving landing and parking fees for Regional Connectivity Scheme (RCS) flights. Additionally, the Airports Authority of India (AAI) has exempted these flights from Terminal Navigation Landing Charges (TNLC).

Furthermore, airlines benefit from a discounted Route Navigation and Facilitation Charge (RNFC). For the first three years, the excise duty on Aviation Turbine Fuel (ATF) purchased at RCS airports is capped at a low 2%. States have also pledged to lower VAT on ATF to 1% or less for a decade, along with offering essential services like security and fire services at reduced costs.

The latest initiatives, including UDAN 3.0, have introduced new tourism routes connecting multiple destinations in the Northeast region, while UDAN 5.1 is aimed at expanding helicopter services in hilly areas to boost tourism, hospitality, and local economic growth.

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