Whalesbook
India's ambitious UDAN scheme, designed to connect remote areas by air, is facing significant headwinds. The government has spent nearly ₹900 crore on 15 regional airports that remain entirely non-operational. These facilities, intended to boost air connectivity in interior regions, continue to incur substantial maintenance expenses without any scheduled aircraft landings.
UDAN Scheme Under Fire
The total outlay over eight years, from 2017 to present, highlights the challenges in expanding India's aviation sector. Documents submitted to Parliament reveal that while the Civil Aviation Ministry has disbursed over ₹4,300 crore in subsidies to support regional routes, the non-operational status of these hinterland airports exposes a stark gap between aspirational goals and on-ground realities. Seven of the non-functional hubs were inaugurated as recently as 2024, underscoring the urgency of the issue.
Wasted Infrastructure Investment
Uttar Pradesh is the hardest hit state, housing six of the 15 'temporarily non-operational' airports, including Aligarh, Azamgarh, and Kushinagar. Other affected locations span Madhya Pradesh, Punjab, Odisha, Himachal Pradesh, Gujarat, Sikkim, and Karnataka. For instance, Shimla airport, where the first UDAN flight took off in 2017, continues to incur ₹116.70 crore in maintenance costs despite suspended operations. Similarly, the Pakyong airport in Sikkim has seen ₹178.75 crore spent on upkeep after its initial ₹605 crore construction.
Economic Realities Bite
Aviation consultants point to the fundamental issue of commercial viability. 'Subsidy-based schemes like UDAN generally do not work in aviation,' noted Mark D. Martin, founder and chief executive at Martin Consulting. 'Commercial viability comes when there is demand. Once the three-year subsidy or VGF period ends, many flight operations turn unviable.' This often occurs when airlines, heavily reliant on such schemes, fail or exit the market, leaving airports idle, as seen with FlyBig at Moradabad. Some industry players, like FLY91 founder Manoj Chacko, still see potential if the right business case is made, but acknowledge the need for viable airline operators.