UDAN Program Overhaul: Central Government Extends Subsidy Duration to Five Years and Changes Funding Source to Exchequer

The government has announced a significant overhaul of its transportation subsidy program, in response to the decline in usage of over 90% of routes established under the previous scheme after the subsidy period ended. The revised plan features a substantial budget allocation of ₹28,840 crore, representing an increase of nearly six times the funding compared to the previous initiative.

This revamped scheme aims to enhance connectivity and ensure that critical routes remain operational and accessible, potentially benefiting a wider range of communities. The increased financial commitment reflects the governments recognition of the need for sustainable transportation solutions. It is expected that the new program will also introduce measures to better monitor route utilization and effectiveness, thereby addressing the shortcomings of the previous approach. Further details regarding the implementation timeline and specific routes targeted for support are anticipated in the coming weeks.