Ministry of Civil Aviation: VGF amount of around Rs. 2433 crore has been released to Selected Airline Operators

Ministry of Civil Aviation launched Regional Connectivity Scheme (RCS) – UDAN (Ude Desh ka Aam Nagrik) on 21-10-2016 to stimulate regional air connectivity and making air travel affordable to the masses. UDAN is a self-financing scheme. Under UDAN, 469 routes connecting 74 unserved and underserved airports including 9 Heliports & 2 Water aerodromes have been operationalized as on 28.02.2023.

Promoting affordability of regional air connectivity is envisioned under UDAN by supporting Selected Airline Operators (SAOs) through concessions by Central Government, State Governments/UTs and airport operators to reduce the cost of airline operations on regional routes and providing financial (Viability Gap Funding or VGF) support to meet the gap, if any, between the cost of airline operations and expected revenues on such UDAN routes.

The concessions offered under the scheme are as under:


Airport operators:

i) Airport operators shall not levy Landing and Parking Charges on RCS Flights.

ii) AAI shall not levy any Terminal Navigation Landing Charges (TNLC) on RCS Flights.

iii) Route Navigation and Facilitation Charges (RNFC) will be levied by AAI on a discounted basis @ 42.50% of Normal Rates on RCS Flights.

iv) Selected Airline operators shall be allowed self-ground handling for operations under the Scheme at all airports.;


Central Government:

i)Excise Duty at the rate of 2% shall be levied on Aviation Turbine Fuel (ATF) purchased by selected Airlines Operators from RCS Airports for initial period of thee (3) years from the date of notification of this scheme.

ii)Selected Airline Operators will have the freedom to enter into code sharing arrangements with both domestic as well as international airlines.;

States Government at RCS Airports within their States:

i)Reduce VAT to 1% or less on ATF at RCS Airports located within the states for a period of 10 years.

ii)Provide minimum land, if required, free of cost and free from encumbrances for development of RCS Airports and provide multi-modal hinterland connectivity as required.

iii)Provide security and fire services free of cost at RCS Airports.

iv)Providing, or cause to be provided, electricity, water and other utility services at substantially concessional rates at RCS Airports.

v)Provide a certain share (20% for States other than North-Eastern States where the ratio will be 10%) of determined VGF.


During various rounds of bidding under UDAN, 56 seaplane routes connecting 25 water aerodromes are identified in the States/UTs of Gujarat, Assam, Telangana, Andhra Pradesh, Andaman and Nicobar Islands, Goa, Himachal Pradesh and Lakshadweep.

An airport which is included in the awarded routes of Regional Connectivity Scheme (RCS) – UDAN (Ude Desh ka Aam Nagrik) and requires upgradation/development for commencement of RCS operations, is developed under “Revival of unserved and underserved airports” scheme.

The year-wise details of 74 airports operationalized under Regional Connectivity Scheme is at Annexure-A.

UDAN is a self-financing scheme. VGF amount of around Rs. 2433 crore has been released to Selected Airline Operators as on 28.02.2023 for the operation of UDAN flights.


List of RCS Airports operationalized

S No. State Airport Year
Andhra Pradesh Kadapa (Underserved)(Round-1) 2017
Kurnool Airport 2021
Assam Jorhat (Underserved)(Round-2) 2018
  Lilabari (Underserved)(Round-2) 2019
  Tezpur (Underserved)(Round-2) 2018
Rupsi 2021
Arunachal Pradesh Tezu 2021
Passighat 2021
  Hollongi (Round-4.3) 2023
Bihar Darbhanga(Round-1) 2020
Chhattisgarh Jagdalpur(Round-1) 2018
  Bilaspur (Round-1) 2021
Daman & Diu Diu (Underserved)(Round-1) 2018
Gujarat Bhavnagar (Underserved)(Round-1) 2018
  Jamnagar (Underserved)(Round-1) 2018
  Kandla(Round-1) 2017
  Keshod (Round-2) 2022
  Mundra(Round-1) 2018
  Porbandar (Underserved)(Round-1) 2017
Statue of Unity (W) (Round-3) 2020
Sabarmati River Front  (W) (Round-3) 2020
Haryana Hissar (Round-2) 2021
Himachal Pradesh Shimla(Round-1) 2017
  Kullu (Underserved)(Round-3) 2019
  Mandi – Heliport(Unserved) 2021
  Rampur – Heliport(Unserved) 2021
Jharkhand Deoghar (Round-4.1) 2022
  Jamshedpur (Round-1) 2023
Karnataka Belgaum (Underserved)(Round-3) 2019
  Hubli (Underserved)(Round-2) 2018
  Mysore(Round-1) 2017
  Vidyanagar(Round-1) 2017
  Kalaburgi (Gulbarga)(Round-3) 2019
  Bidar(Round-1) 2020
Kerala Kannur(Round-2) 2019
Madhya Pradesh Gwalior (Underserved)(Round-1) 2017
Maharashtra Gondia 2022
Jalgaon(Round-1) 2017
  Kolhapur(Round-1) 2018
  Nanded(Round-1) 2017
  Ozar (Nasik)(Round-1) 2017
Sindhudurg 2021
Meghalaya Shillong (Underserved)(Round-1) 2018
Nagaland Dimapur (Underserved)(Round-3) 2019
Odisha Jharsuguda(Round-1) 2018
  Jeypore (Round-1) 2022
  Rourkela (Round-1) 2023
Pondicherry (UT) Pondicherry (Underserved)(Round-1) 2017
Punjab Adampur(Round-1) 2018
  Bhatinda(Round-1) 2017
  Ludhiana(Round-1) 2017
  Pathankot(Round-1) 2018
Rajasthan Bikaner(Round-1) 2017
  Jaisalmer(Round-1) 2017
  Kishangarh(Round-2) 2018
Sikkim Pakyong(Round-2) 2018
Tamil Nadu Salem(Round-1) 2018
Uttar Pradesh Agra (Underserved)(Round-1) 2017
  Allahabad (Underserved)(Round-2) 2018
  Kanpur(Chakeri)(Round-1) 2018
  Hindon(Round-2) 2019
  Bareilly 2021
  Kushinagar 2021
Uttarakhand Pantnagar (Underserved)(Round-1) 2019
  Pithoragarh(Round-2) 2019
  Sahastradhara –Heliport


  Chinyalisaur –Heliport


  Gaucher –Heliport


  New Tehri –Heliport


  Srinagar –Heliport


  Haldwani – Heliport


  Almora – Heliport


West Bengal Durgapur(Underserved)(Round-1) 2019
  CoochBehar (Unserved) (Round-1) 2023


This information was given by the Minister for Civil Aviation & Steel Sh. Jyotiraditya M. Scindia in a written reply to a question in Lok Sabha today.

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