India’s Ministry of Civil Aviation reignited the UDAN scheme with Round 5.0 bidding, inviting airlines to claim 100 underserved routes connecting Category-2 (20-80 seats) and Category-3 (>80 seats) aircraft without 600km distance caps for the first time.
The market-driven scheme lists unserved/underserved airstrips for airline proposals, waiving previous viability gap funding caps while mandating operations within four months of route awards—down from six months. Airports Authority of India identifies 50 operational-ready facilities including heliports and water aerodromes accelerating last-mile connectivity.
UDAN 4.0 awarded 78 routes in 2020 with 766 total sanctioned since inception—only 268 currently operational. Round 5.0 simplifies route novation between operators while capping VGF at uniform lengths across priority/non-priority areas, spurring airline participation amid narrowbody shortages.
UDAN 5.0 Changes Airlines Must Master
Key modifications transform bidding dynamics:
- No stage length cap (previously 600km)
- Cat-2/3 aircraft focus (20-80 + >80 seats)
- 4-month operational deadline (vs 6 months)
- Simplified novation between airlines
- Ready airports listed for immediate ops
Airports Authority of India waives landing fees while states provide security, electricity, and firefighting gratis. Bidders assess demand viability submitting proposals for listed unserved airstrips like Gondia, Darbhanga, and Kalaburgi.
UDAN Operational Stats:
| Round | Routes Awarded | Operational | Airports Served |
|---|---|---|---|
| UDAN 1-4 | 766 | 268 | 50+ (incl. heliports) |
| UDAN 5.0 | Bidding Open | Target: 100 | Cat-2/3 focus |
