Who got UDAN's ₹10,169 crore? RTI shows IndiGo received biggest subsidy, Ayodhya top airport beneficiary

As Prime Minister Narendra Modi prepares to announce a 10-year extension of the UDAN (Ude Desh Ka Aam Nagrik) scheme till 2037 during his visit to Jodhpur on July 4, an RTI reply accessed by India Today has revealed how more than ₹10,169 crore has been spent under the regional connectivity programme since its launch in 2016.

The records show the Centre split its spending almost equally between building aviation infrastructure and subsidising airlines operating commercially unviable regional routes. IndiGo emerged as the biggest recipient of airline subsidies, while Ayodhya Airport received the highest infrastructure funding.

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Nearly ₹10,200 crore spent

According to the RTI reply, the Centre sanctioned ₹5,500 crore for developing airports, airstrips, heliports and water aerodromes under UDAN. Of this, ₹4,833.25 crore had been spent till March 31, 2026.

During the same period, airlines received ₹4,669.02 crore as Viability Gap Funding (VGF), the government subsidy meant to bridge the gap between operating costs and revenues on regional routes.

Together, the two components account for public spending of over ₹10,169 crore.

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IndiGo received the highest subsidy

The RTI shows government support has largely been concentrated among a handful of airlines.

IndiGo received the highest VGF at ₹1,157.13 crore, followed by Alliance Air (₹994.99 crore), GHODAWAT (₹684.90 crore), SpiceJet (₹654.13 crore) and TruJet (₹382.03 crore).

Together, these five carriers received nearly ₹3,873 crore, accounting for around 83% of all subsidies released under the scheme.

Other beneficiaries include Just Udo Aviation, Air Taxi, Big Charters, GSEC Monarch, Heritage, Jet Airways, Pawan Hans, Air Odisha, Zoom Air, and Deccan Charters.

The year-wise data shows VGF payments peaked at ₹807.02 crore in 2023-24 before falling to ₹628.42 crore in 2024-25 and a provisional ₹621.99 crore in 2025-26, indicating that government support continues to play a key role in sustaining regional air routes.

Ayodhya tops airport funding

Alongside airline subsidies, the government invested heavily in aviation infrastructure.

The RTI lists 185 airports, airstrips, heliports and water aerodromes that have been developed or revived under the scheme.

Ayodhya Airport received the highest allocation at ₹347.41 crore, followed by Kolhapur (₹333.29 crore), Jharsuguda (₹183.67 crore), Pakyong (₹178.75 crore), Prayagraj (₹161.43 crore), Amravati (₹148.53 crore), Kanpur (₹134.79 crore), Darbhanga (₹127.82 crore) and Adampur (₹125.60 crore).

Connectivity expands across India

The RTI data shows UDAN has evolved beyond an airport development programme into a nationwide regional connectivity initiative.

Major airport projects have been spread across Uttar Pradesh, Odisha, Bihar, Maharashtra and Gujarat, while Uttarakhand and Himachal Pradesh have seen the development of heliports aimed at improving connectivity in mountainous regions.

The scheme has also expanded to island territories through water aerodromes in Lakshadweep and the Andaman and Nicobar Islands, besides similar projects in Gujarat and Assam.

In the Northeast, infrastructure has been created across Arunachal Pradesh, Assam, Meghalaya, Manipur, Nagaland and Sikkim, reflecting the programme's focus on improving connectivity to remote areas.

The RTI provides one of the most comprehensive official snapshots of the finances of the UDAN scheme as the Centre prepares to extend the flagship regional connectivity programme for another decade.