Uttar Pradesh has emerged as the state with the most discontinued routes under the Ude Desh ka Aam Nagrik (UDAN) scheme, a government initiative aimed at enhancing regional air connectivity. A total of 34 air routes in Uttar Pradesh have ceased operations, failing to complete their intended three-year viability gap funding (VGF) support tenure.
Since its inception, the UDAN scheme has seen 679 routes operationalized across India. However, only 348 of these routes are currently active. The significant number of discontinuations, particularly in Uttar Pradesh, highlights ongoing challenges related to economic viability in connecting smaller cities and underserved regions.
Economic Viability Challenges Halt Services
The primary objective of the UDAN scheme is to establish air connectivity to previously unserved and underserved airports. Despite facilitating the development of numerous airports and offering alternative flight options, many routes have struggled to become self-sustaining. The government has indicated that economic viability issues are a key factor in these service discontinuations.
In response to underperformance, penalties, including the forfeiture of bank guarantees, were imposed in 14 cases during the financial years 2024-25 and 2025-26, according to data presented to the parliament.
Future Outlook and New Initiatives
The Ministry of Civil Aviation has stated that these discontinued routes may be reconsidered in subsequent phases of the UDAN scheme. State governments are being encouraged to prioritize and identify high-potential aerodromes based on regional connectivity needs, development objectives, and demand potential to ensure continuity of services.
The government recently launched the second phase of the UDAN scheme with a substantial outlay of Rs 28,840 crore. This includes Rs 3,661 crore specifically allocated for the development of 200 heliports in Hilly, North-Eastern, and Aspirational (HINER) States/districts. To foster self-sustainability and reduce perpetual dependence on financial aid, the updated scheme incorporates a longer VGF mechanism, extending up to five years. This extended support is progressively tapered to help airlines transition towards commercially viable operations, while UDAN airfares remain capped for VGF-supported seats to maintain affordability.
"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," the ministry affirmed.
This strategic shift aims to improve the long-term success rate of UDAN scheme routes and ensure that regional air connectivity continues to expand sustainably across India.