The Union Cabinet’s approval of the Modified Regional Connectivity Scheme (UDAN) is set to significantly enhance air travel accessibility for Tier 2 and Tier 3 cities like Visakhapatnam.
N. Purushottam, Director of Visakhapatnam Airport, said on Wednesday that the latest iteration focuses on a robust expansion of infrastructure, including the development of 100 airports and 200 heliports across the country. For the coastal region of Andhra Pradesh, the scheme promises a more inclusive framework by offering affordable airfares on larger aircraft, ensuring a greater number of subsidised seats for regional commuters.
A major highlight of the modified scheme is the “Challenge Mode” for aerodrome development, where State governments nominate sites based on demand and readiness to accelerate construction in underserved areas. To ensure long-term sustainability, Viability Gap Funding (VGF) has been extended from three to five years, providing airlines ample time to achieve commercial viability on routes connecting regional hubs like Visakhapatnam to remote or aspirational districts.
The policy further introduces three years of operations and maintenance (O&M) support to manage manpower costs and ensure new airports remain operational. It also aligns with the Atmanirbhar Bharat initiative by supporting domestic aircraft acquisition to bolster the local manufacturing ecosystem.
