The government is exploring new funding mechanisms to sustain and expand its flagship UDAN (Ude Desh ka Aam Nagrik) scheme, the regional air connectivity programme that aims to make flying affordable and accessible to smaller cities and remote towns, The Economic Times reported.

Officials told the paper that the existing levy-based system, which funds airline subsidies through a fee on commercial flights, is no longer enough to support the government’s ambitious target of connecting 120 new destinations over the next 10 years.

Fresh push for regional connectivity

Launched in 2016, the UDAN scheme caps airfares for roughly half the seats on select regional routes, making it viable for passengers but unprofitable for airlines. To bridge that gap, the government offers incentives like waiv

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