New Delhi, September 22: Twenty-one states and Union Territories have signed Memoranda of Understanding with the Civil Aviation Ministry for the next phase of the UDAN scheme, with the Centre planning 100 new airports and 200 modern helipads over the next 10 years.
Civil Aviation Minister Rammohan Naidu said the expanded programme aims to facilitate travel for four crore UDAN passengers, building on the infrastructure and connectivity created under the scheme over the past decade.
Naidu said more than 80 airports had been developed under the modified UDAN during the period, extending affordable air travel benefits to nearly 1.54 crore passengers. The government also launched the Challenge Mode for the new phase and released documents for the bidding process.
Under the Challenge Mode, airport projects will receive priority and be fast-tracked, with the government targeting an 18-month construction timeline instead of the earlier average of two to three years.
The minister said the aviation sector currently supports more than seven million jobs and projected that employment in the sector could exceed 20 million by 2040.
The government will provide Viability Gap Funding on a tapered basis and extend the duration of such support from three years to five years. Naidu said government partnerships would also need to be structured to ensure their continuity.
He urged states to engage more closely with smaller airlines as the government seeks to expand the number of airlines operating in India. According to Naidu, smaller carriers want to expand rapidly and require support from states. He said states could help bring groups together to establish airlines and explore smaller models to support regional carriers.
The minister also addressed regulatory oversight of SpiceJet, saying the Directorate General of Civil Aviation was maintaining close scrutiny of the airline’s operations and finances to ensure that safety standards were not compromised.
Naidu said the Centre had earlier provided support to the airline through the Emergency Credit Line Guarantee Scheme during difficult conditions for the aviation industry, including challenges arising from the West Asia crisis. Under the scheme, the airline received Rs 150 crore.
The next phase of UDAN comes with the government seeking to expand regional aviation infrastructure while reducing the time required to develop new airports and extending financial support for connectivity projects.
