UP saw the largest 34 routes discontinued under the Udan scheme

Uttar Pradesh saw the largest 34 routes under the regional air connectivity Udan scheme discontinued before completion of their 3-year viability gap funding (VGF) support tenure and are non-operational.

According to the government, there are 14 cases in which penalties were imposed by forfeiture of bank guarantees against short performance during 2024-25 and 2025-26, according to the data tabled in the parliament.

The underlying premise of the Udan scheme is to establish connectivity to unserved and underserved airports and regions. The scheme has facilitated the development of airports, many of which have evolved to provide alternate flight and route options, thereby not losing out on connectivity.

Since the inception of the scheme, 679 Udan routes have been operationalised, out of which 348 routes are presently operational.

The Ministry of Civil Aviation has said that the above discontinued routes may be considered under the next phase of UDAN, with State Governments encouraged to identify and prioritize them for award based on regional connectivity needs, development objectives, and demand potential.

“To ensure continuity of services under the Udan Scheme, State Governments have been entrusted with identifying and prioritising high-potential aerodromes, while airlines are required to submit business plans before route awards,” said the ministry.

The government has recently launched the second phase of the Udan scheme with an outlay of Rs 28,840 crore, including Rs 3,661 crore for development of 200 heliports in Hilly, North-Eastern and Aspirational (HINER) States/districts.

To ensure self-sustainability of Udan routes over time without perpetual dependence on financial support, the Scheme incorporates a longer VGF mechanism extending up to five years, progressively tapered to enable airlines to transition towards commercially sustainable operations, while UDAN airfares are capped for seats supported through VGF to ensure affordability.