The Centre has stated that 469 routes have been operationalised under the UDAN scheme so far. According to a government statement, these 469 routes connect 74 unserved and underserved airports, including 9 Heliports and 2 water aerodromes. UDAN is a self-financing programme.   


Earlier in October 2016, the Ministry of Civil Aviation had introduced the Regional Connectivity Scheme (RCS) UDAN (Ude Desh ka Aam Nagrik) to promote regional air connectivity and make air travel more affordable for the public. 


The UDAN scheme aims to promote regional air connectivity and affordability by assisting selected airline operators with concessions from the central government, state governments/Union territories, and airport operators. These concessions will help reduce the cost of airline operations on regional routes and provide financial (Viability Gap Funding or VGF) support to meet the gap, if any, between the cost of airline operations and expected revenues on UDAN routes.


The concessions offered under the scheme are as under: 


Airport Operators:


i) Airport operators are not permitted to collect landing and parking fees for RCS flights.


ii) On RCS flights, AAI should not collect any Terminal Navigation Landing Costs (TNLC).


iii) AAI shall levy Route Navigation and Facilitation Costs (RNFC) for RCS Flights at a reduced rate of 42.50% of Regular Rates.


iv) Designated airline operators would be granted self-ground handling for Scheme operations at all airports.


Central Government:


i) Selected airline operators will be able to enter into code-sharing agreements with both domestic and foreign carriers.


ii) A 2% excise duty will be charged on Aviation Turbine Fuel (ATF) bought by selected Airlines Operators from RCS Airports for the first three (3) years following notice of this plan.


States Government:


i) Provide a minimal amount of land, free of charge and without encumbrances, for the development of RCS Airports, as well as multi-modal hinterland connection as needed.


ii) Offer free security and fire services at RCS airports.


iii) Providing or causing the provision of power, water, and other utility services at significantly reduced rates at RCS Airports.


iv) Provide a specified percentage of the calculated VGF (20% for states other than the North-Eastern States, where the ratio will be 10%).


v) For a period of ten years, reduce VAT on ATF at RCS airports situated inside the states to 1% or less.