The Centre will extend Viability Gap Funding (VGF) under the UDAN regional connectivity scheme from the existing three years to five years in a phased manner, a move aimed at improving the financial sustainability of airlines operating on regional routes. The announcement was made by Union Civil Aviation Minister Kinjarapu Ram Mohan Naidu during a workshop on the revamped UDAN scheme.
The minister said the enhanced support period is expected to provide airlines with greater financial stability, allowing them to operate regional routes for a longer duration before they become commercially viable. The revised framework is part of the government’s broader plan to strengthen regional air connectivity and ensure the long-term success of the UDAN programme.
Naidu also said the government has earmarked ₹29,000 crore for the next 10 years under the renewed UDAN initiative. The programme aims to connect 120 new destinations and facilitate air travel for nearly four crore passengers over the next decade, while expanding aviation infrastructure across the country.
Highlighting the growth of India’s aviation sector, the minister said the government is developing new airports and upgrading existing facilities at an unprecedented pace. However, he emphasised that infrastructure expansion must be complemented by increased flight connectivity so that newly developed airports can be effectively integrated into the national aviation network.
Launched in 2016, the UDAN (Ude Desh ka Aam Nagrik) scheme was introduced to make air travel affordable and improve connectivity to underserved and unserved regions. The extension of viability support is expected to encourage greater airline participation, improve route sustainability and further strengthen regional aviation as India continues to expand its airport network.