UDAN is a regional connectivity scheme spearheaded by the Government of India. The full form of UDAN is ‘Ude Desh ka Aam Nagrik’ and aims to develop smaller regional airports to allow common citizens easier access to aviation services

It is one of the new policies implemented since June 2016. The scheme duration is for 10 years.

Objectives:

• ​​​​​​​Operationalization and development of 425 underserved or unserved airports in the country

• Boost inclusive economic development by providing faster connectivity

• Development of air transport infrastructure in remote areas aiding job growth

This scheme is a part of the National Civil Aviation Policy (NCAP) and is funded jointly by the Government of India and the state governments.

The central government will provide the following:

• Subsidy to cover Value Gap funding (VGF) for participating airlines

• Concessional GST on tickets booked using the scheme

• Codesharing for flights under the policy

State governments will extend the following measures:

• GST reduction to 1% for 10 years

• Coordination with oil companies to facilitate refuelling facilities

• Provide land for airport and ancillary development

• Trained security personnel

• Utilities at subsidised rates

• 20% of VGF

UDAN created a framework based on the need and led to the formulation of:

• ​​​​​​​​​​​​​​Lifeline UDAN (for transportation of medical cargo during a pandemic)

• Krishi UDAN (value realization of agriculture products especially in Northeastern Region and tribal districts).

• International UDAN routes for Northeastern Region to explore International Connectivity from/to Guwahati and Imphal.