Home India Ministry of Civil Aviation Parliament Question: Reduction in Budgetary Allocation for U...
Date: 2025-08-07 Category: Not Applicable State: Union Government Country: India

Parliament Question: Reduction in Budgetary Allocation for UDAN

Issued by Ministry of Civil Aviation · Not Applicable

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Executive Summary & Key Takeaways

**Summary:** This document addresses Lok Sabha Unstarred Question No. 3146, concerning the UDAN (Ude Desh ka Aam Nagrik) scheme, specifically regarding budgetary allocation, route discontinuation, and the potential restart of operations at Bikaner Airport. Regarding budgetary allocation, the Budget Estimates for the Regional Connectivity Scheme-UDAN for 2025-26 are Rs. 540.00 crore. While this represents a decrease from the previous year's Revised Estimates of Rs. 800.00 crore, it is an increase compared to the Budget Estimates of Rs. 502.00 crore from the year prior to that. On the subject of route discontinuation, of the 285 routes that have completed their initial three-year Viability Gap Funding (VGF) tenure, 133 routes have been re-operationalized or continue to operate commercially without VGF or concessions. 102 routes are ineligible for rebidding as both connecting airports are already served. The remaining routes were discontinued due to factors including the COVID-19 pandemic, aircraft grounding attributed to supply chain issues, airline shutdowns, and low passenger demand. The Ministry of Civil Aviation is conducting special bidding rounds to revive discontinued routes. Finally, regarding Bikaner Airport, Alliance Air has been operating RCS flights between Bikaner and Jaipur since June 17, 2024.

Key Entities Referenced

UDAN scheme: A Regional Connectivity Scheme (RCS) of the Ministry of Civil Aviation, Government of India, aimed at enhancing air connectivity to underserved and unserved airports in the country. Ministry of Civil Aviation: The Indian government ministry responsible for the formulation and administration of the rules, regulations and laws relating to civil aviation in India. SHRI HANUMAN BENIWAL: Member of Lok Sabha who raised the unstarred question regarding the reduction in budgetary allocation for the UDAN scheme. Murlidhar Mohol: Minister of State in the Ministry of Civil Aviation, who provided the answer to the Lok Sabha question. Bikaner Airport in Rajasthan: An airport located in Bikaner, Rajasthan, which the government is considering to restart commercial operations under the UDAN scheme. Viability Gap Funding VGF: A financial mechanism used under the UDAN scheme to provide subsidies to airlines to cover the gap between the cost of operating flights on certain routes and the revenue generated. Jaipur, Rajasthan: Capital city of Rajasthan, connected to Bikaner by RCS flights operated by Alliance Air. Alliance Air: An Indian regional airline that operates RCS flights between Bikaner and Jaipur.
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GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA UNSTARRED QUESTION NO. : 3146 th (To be answered on the 7 August 2025) REDUCTION IN BUDGETARY ALLOCATION FOR UDAN 3146. SHRI HANUMAN BENIWAL Will the Minister of CIVIL AVIATION be pleased to state:- (a) whether it is a fact that the budgetary allocation for the UDAN scheme was reduced to Rupees 540 crore in 2025–26 from Rupees 800 crore during the last year and if so, the reasons therefor; (b) whether more than 50 percent of the UDAN routes were discontinued after completion of the three-year Viability Gap Funding (VGF) tenure, if so, the reasons therefor along with the steps being taken to revive these routes; and (c) whether the Government is considering any concrete plan to restart commercial operations at Bikaner Airport in Rajasthan under the UDAN scheme and if so, the details thereof? ANSWER Minister of State in the Ministry of CIVIL AVIATION (Shri Murlidhar Mohol) (a): The Budget Estimates for 2025-26 (Rs. 540.00 crore) under Regional Connectivity Scheme-UDAN shows a decrease from the previous year's Revised Estimates of Rs. 800.00 crore. However, it still reflects an increase over the previous year's Budget Estimates of Rs. 502.00 crore. (b): Under the Regional Connectivity Scheme-Ude Desh ka Aam Nagrik (RCS-UDAN), 285 routes have completed the three-year tenure. Out of these, 133 routes have been re-operationalized or continue to operate commercially without Viability Gap Funding (VGF) or concessions. Further, 102 routes are ineligible for re-bidding under current RCS provisions, as both connecting airports are already served, reflecting the Scheme's success in enhancing regional connectivity and operationalizing multiple routes from airports developed under RCS. The remaining routes were discontinued due to factors such as the COVID-19 pandemic, grounding of many aircraft due to supply chain issues, shutdown of airlines and low passenger demand on some routes. To revive these routes,special bidding rounds are conducted to operationalize them. (c): Alliance Air is operating RCS flights between Bikaner and Jaipur since 17.06.2024. *****

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