India's Idle Airports to Soar Again? Secret Subsidy Plan to Fill Ghost Flights Revealed!

India is gearing up to revive its UDAN (Ude Desh Ke Aam Nagrik) scheme by introducing subsidies for airlines operating flights to airports that have remained idle despite significant government investment. The goal is to encourage airlines to fly to these "ghost projects" and make the substantial infrastructure spending more meaningful. Airlines will receive monthly subsidy payments to cover the gap between regular and discounted fares, with incentives based on factors like the number of seats sold. The UDAN scheme, launched in 2016, has already added 649 new air routes and operationalized 93 airfields, but recent reports indicate at least a dozen airports recorded zero passengers between December and March. This revamp seeks to address the imbalance between infrastructure development and actual passenger demand. The proposed changes may include an auction-based system or a direct incentive approach, moving beyond the existing bidding process. The government is also planning a federal Transport Planning Authority to better coordinate infrastructure projects. Impact: This news could significantly impact the Indian stock market by affecting the financial performance of airlines, potentially boosting infrastructure and construction companies involved in airport development, and influencing investor sentiment towards the aviation and transportation sectors. The government's willingness to inject funds into underperforming assets signals a proactive approach to economic stimulus and infrastructure utilization. The rating for its direct impact on the Indian stock market is 7/10.