India to pick first 50 airports under revamped UDAN scheme

State governments must commit to operational support including concessional electricity and water, free security and firefighting services, and a value-added tax on aviation turbine fuel capped at 1%, the ministry said. The scheme also provides ₹2,577 crore in operational and maintenance support to help Regional Connectivity Scheme-only airports during their first years. That financial assistance runs for three years, capped at ₹3.06 crore annually per airport and ₹0.90 crore per heliport or water aerodrome.

Sources said the support covers a portion of staffing costs for communication, navigation, surveillance and air traffic management, plus meteorological services, at up to 441 airports, heliports and water aerodromes. The modified framework also waives landing, parking and passenger-related airport charges for RCS flights, along with exemptions from terminal navigation landing charges and discounted route navigation facility charges. The goal is to improve the commercial viability of regional air services by lowering airline operating costs at smaller airports.

The first 50-airport selection is expected to set the template for later phases. The ministry has not announced a timeline for the broader 100-airport target beyond the eight-year horizon.