Parliament Question: Airports, Heliports and Water Aerodromes under UDAN

**Executive Summary** This document is an answer from the Minister of State in the Ministry of Civil Aviation to Unstarred Question No. 2241 in Lok Sabha, concerning the operationalization of airports, heliports, and water aerodromes under the UDAN scheme. The response addresses the number of aerodromes operationalized, reasons for any shortfalls, initiatives to enhance cargo handling capacity, and steps to address challenges faced by airlines in aircraft leasing and financing. The answer was given on February 12th, 2026. **Key Points / Main Content** * **UDAN Scheme Progress:** * Under the Regional Connectivity Scheme - Ude Desh ka Aam Nagrik (RCS-UDAN), 6 aerodromes, including 2 heliports, were operationalized during 2024-25. * **Reasons for Delays in Aerodrome Development:** * Long gestation periods due to feasibility studies, design, approvals, and construction processes. * Challenges related to land availability, acquisition, environmental and statutory clearances, and regulatory approvals. * Inadequate technical expertise and funding constraints with State Governments. * Non-availability of suitable aircraft with airlines and an evolving regulatory framework. * **Cargo Handling Capacity Enhancement Initiatives:** * Airports Authority of India (AAI) created AAICLAS (AAI Cargo Logistics and Allied Services Company Limited) to meet the growing need of Air Cargo development. * AAICLAS implemented Simplified Tariff in April 2023 for Domestic Air Cargo facilities at Non-AERA airports managed by AAI. * The Ministry of Civil Aviation (MOCA) has approved a grant for the fiscal years 2024-25, 2025-26, and 2026-27 to cover Customs Cost Recovery Charges (CCRC) for AAICLAS self-managed air cargo terminals at airports in Tier-II&III cities. * **Addressing Aircraft Leasing and Financing Challenges:** * The Government has set up an International Financial Services Centre (IFSC) at GIFT City. * The Government has undertaken regulatory and fiscal reforms such as tax exemptions, holidays, etc., to promote aircraft leasing and financing. * The Protection of Interest in Aircraft Objects Act, 2025 was passed by the Parliament and came into force on 01.05.2025. * The Union Budget 2026-27 proposed to increase the period of deduction under section 147 to 20 consecutive years out of 25 years for units in IFSC and 20 consecutive years for Offshore Banking Units (OBUs). * The business income of these units from IFSC after the expiry of the period of deduction will be taxed at 15%. **Impact Analysis** **Airlines** *Impact:* Benefits from measures to address aircraft leasing and financing challenges, potentially reducing operational costs and improving access to aircraft. *Action Required:* Stay informed about updated policies and regulations related to aircraft leasing and financing and take advantage of offered incentives and frameworks. **Airports Authority of India (AAI) and AAICLAS** *Impact:* Enhanced role in developing and managing air cargo infrastructure, requiring efficient implementation of new tariffs and utilization of grants. *Action Required:* Manage and optimize air cargo services efficiently; effectively utilize grants to cover CCRC; promote the facilities and services to attract more cargo traffic. **Ministry of Civil Aviation (MOCA)** *Impact:* Responsibility for overseeing the implementation of policies and initiatives related to aerodrome development, cargo handling, and aircraft leasing/financing. *Action Required:* Ensure effective monitoring of the progress in aerodrome development, enforce policies and regulations related to aircraft leasing and financing, and oversee the utilization of grants provided to AAICLAS.

Key Entities Referenced