Govt spent Rs 10,169 crore on Udan; IndiGo biggest subsidy receiver: RTI

Published 2 July 2026 · india

More than a decade after its launch, the government's flagship regional connectivity scheme, Udaan (Ude Desh ka Aam Nagrik), has seen a financial outlay of

More than a decade after its launch, the government's flagship regional connectivity scheme, Udaan (Ude Desh ka Aam Nagrik), has seen a financial outlay of Rs 10,169 crore, with low-cost carrier IndiGo emerging as the largest beneficiary of airline subsidies, according to information obtained through the Right to Information (RTI) Act. Details of how public funds have been utilised during the programme's first decade were obtained by India Today as Prime Minister Narendra Modi prepares to announce a 10-year extension of the scheme until 2037 during his visit to Jodhpur on July 4. Read Full Story The records show that the government has committed more than Rs 10,169 crore to the regional connectivity scheme since its launch in 2016, dividing expenditure between the development of aviation infrastructure and subsidies for airlines operating commercially unviable routes. While IndiGo emerged as the largest recipient of airline subsidies under the scheme, Ayodhya Airport received the highest infrastructure funding.

Nearly a decade after its launch, Udaan has evolved into one of the government's flagship regional aviation initiatives, with spending split almost evenly between building connectivity infrastructure and supporting airline operations on underserved routes. According to the RTI response, the Centre sanctioned Rs 5,500 crore for the development of airports, airstrips, heliports and water aerodromes. Of this, Rs 4,833.25 crore had been spent as of March 31, 2026. During the same period, airlines received Rs 4,669.02 crore as Viability Gap Funding (VGF), a subsidy designed to bridge the gap between operating costs and revenues on regional routes. Together, the two components account for government support exceeding Rs 10,169 crore. INDIGO TOPS SUBSIDY RECIPIENTS The RTI data shows that a handful of carriers accounted for the bulk of airline subsidies released under the scheme. IndiGo received the highest VGF support at Rs 1,157.13 crore, followed by Alliance Air (Rs 994.99 crore), GHODAWAT (Rs 684.90 crore), SpiceJet (Rs 654.13 crore) and TruJet (Rs 382.03 crore).

Collectively, these five airlines received nearly Rs 3,873 crore, representing about 83 per cent of all subsidies disbursed under Udan. Other beneficiaries included Just Udo Aviation, Air Taxi, Big Charters, GSEC Monarch, Heritage Aviation, Jet Airways, Pawan Hans, Air Odisha, Zoom Air and Deccan Charters. The year-wise figures indicate that subsidy support expanded alongside the scheme's growth. VGF payments peaked at Rs 807.02 crore in 2023-24 before declining to Rs 628.42 crore in 2024-25 and a provisional Rs 621.99 crore in 2025-26, underscoring the continued reliance of regional routes on government support. AYODHYA TOPS AIRPORT FUNDING Beyond airline subsidies, substantial investments have been made in aviation infrastructure across the country. The RTI lists 185 airports, airstrips, heliports and water aerodromes that have been developed or revived under Udan. Ayodhya Airport received the highest allocation at Rs 347.41 crore, followed by Kolhapur in Maharashtra (Rs 333.29 crore), Jharsuguda in Odisha (Rs 183.67 crore), Pakyong in Sikkim (Rs 178.75 crore), Prayagraj (Rs 161.43 crore), Amravati (Rs 148.53 crore), Kanpur (Rs 134.79 crore), Darbhanga (Rs 127.82 crore) and Adampur (Rs 125.60 crore).