Centre to pick first 50 airports under modified UDAN scheme

The Union government will soon select the first batch of 50 airports for development under the modified UDAN scheme, inviting nominations from states and Union Territories. The Ministry of Civil Aviation will evaluate proposals under a challenge mode framework before finalising the list, according to sources who spoke to The Hindu BusinessLine.

The modified scheme envisions developing 100 airports and aerodromes over eight years by upgrading existing unserved airstrips, with a capital outlay of Rs 12,159 crore. The Centre has also earmarked Rs 3,661 crore for 200 helipads in hilly, island, remote and aspirational regions. Nominated sites will be assessed on criteria such as encumbrance-free land, infrastructure readiness, passenger traffic projections and tourism potential.

States must commit to operational support including concessional electricity and water, free security and firefighting services, and VAT on ATF capped at 1 per cent. The scheme provides Rs 2,577 crore as operational and maintenance support for RCS-only airports for the first three years, capped at Rs 3.06 crore annually per airport and Rs 0.90 crore per heliport or water aerodrome. Airport charge exemptions for RCS flights are also part of the revised framework.