Budget 2025: Government Modifies Udaan Scheme for Better Connectivity

Finance Minister Nirmala Sitharaman, in her Union Budget 2025 speech on February 1, announced a modified Udaan Scheme to enhance regional air connectivity. The revamped scheme aims to add 120 new destinations across India, significantly expanding travel options for millions.

Since its inception, the Udaan Scheme has facilitated over 1.5 crore middle-class travellers, operationalised 698 routes, and connected 88 ports and airports. Building on this success, the modified version seeks to cater to 4 crore passengers over the next decade, ensuring faster and more affordable air travel for underserved regions.

Boosting Aviation in Remote and Hilly Areas

One of the notable aspects of the modified Udaan Scheme is its focus on helipads and smaller airports in remote, hilly, and northeastern regions. These enhancements aim to improve accessibility and mobility for communities in aspirational districts.

Additionally, the scheme includes the development of greenfield airports in Bihar, supplementing infrastructure projects such as the expansion of Patna Airport and the development of a brownfield airport in Bihta. These measures are expected to drive economic growth and improve connectivity in historically underserved areas.

Western Kosi Canal ERM Project: A Boon for Farmers

Apart from aviation, the budget also allocates financial support for the Western Kosi Canal ERM Project, which will benefit over 50,000 hectares of farmland in the Mithilanchal region of Bihar. The initiative aims to bolster agricultural productivity, ensuring better irrigation facilities and increased efficiency for farmers.

Tourism Development for Employment Generation

Tourism continues to be a pivotal sector for employment and economic growth. The government has announced a strategic plan to develop the top 50 tourist destinations in the country. This initiative will be executed in partnership with state governments through a challenge mode, wherein:

• States will be required to allocate land for key infrastructure.
• Hotels in these destinations will be integrated into the infrastructure HML (Harmonised Master List), fostering investment in the hospitality sector.

These measures aim to create jobs, drive tourism-led economic expansion, and improve facilities at India’s most visited travel hotspots.

Maritime Development Fund: A ₹25,000 Crore Initiative

To strengthen India’s maritime infrastructure, the government has introduced a Maritime Development Fund with a corpus of ₹25,000 crore. This fund will:

• Provide distributed support and encourage competition in the maritime sector.
• Have up to 49% government contribution, with the remaining funds sourced from ports and private sector investments.

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