Jodhpur Airport New Terminal Inaugurated under UDAN Scheme
Source:The Hindu ↗

Why It Matters
Developments in Rajasthan's transport infrastructure (like the Jodhpur Airport expansion) and shifts in major central schemes like UDAN are high-priority topics for RPSC RAS Prelims, directly touching upon the state's tourism, economic sectors, and connectivity.
Summary
Prime Minister Narendra Modi inaugurated the new ₹480 crore terminal building at Jodhpur Airport, featuring heritage-inspired architecture. He also launched the revamped 'Modified UDAN Scheme' with a ₹28,840 crore budget over 10 years, transitioning its funding to the exchequer and extending operational subsidies to 5 years to boost regional air connectivity.
Key Points
- Prime Minister Narendra Modi inaugurated the new terminal building at Jodhpur Airport in Rajasthan, constructed at a cost of ₹480 crore.
- The new Jodhpur Airport terminal spans over 23,000 square metres and is designed to handle up to 20 lakh (2 million) passengers annually, showcasing Rajasthani royal heritage with traditional arches and jharokhas.
- The 'Modified UDAN Scheme' (Regional Connectivity Scheme) was launched with an allocation of ₹28,840 crore over the next 10 years to drive the next phase of aviation-led development.
- Under the Modified UDAN scheme, the central government has extended operational subsidies to five years and transitioned the funding mechanism directly to the central exchequer.
- Key dignitaries attending the event included Rajasthan Governor Haribhau Bagade, Chief Minister Bhajanlal Sharma, Civil Aviation Minister K. Rammohan Naidu, and Tourism Minister Gajendra Singh Shekhawat.
Important Terms
Modified UDAN Scheme
A revamped regional civil aviation scheme approved for FY 2026-27 to FY 2035-36 with a ₹28,840 crore outlay to expand air connectivity by upgrading unserved airstrips, adding helipads, and extending operational subsidies.
UPSC context
GS Paper III (Infrastructure: Airports) & GS Paper II (Government Schemes). Tests understanding of regional connectivity policies and civil aviation growth.
Regional Connectivity Scheme (RCS-UDAN)
Originally launched in October 2016 as 'Ude Desh ka Aam Nagrik', a flagship civil aviation initiative aimed at making air travel affordable and improving connectivity to India's Tier-2 and Tier-3 cities.
UPSC context
GS Paper III (Infrastructure). Relates to regional balanced growth, civil aviation policy, and affordable public infrastructure.
Viability Gap Funding (VGF)
A government financial grant provided to infrastructure projects that are economically justified but lack commercial viability, helping bridge capital/operating gaps to ensure services remain affordable.
UPSC context
GS Paper III (Indian Economy, PPP models). Tests understanding of fiscal policy instruments used to execute public utility services.
Jodhpur Airport Terminal
A newly inaugurated ₹480 crore airport terminal spanning 23,000 square meters with heritage-inspired architecture (arches and jharokhas), capable of handling up to 20 lakh passengers annually.
UPSC context
GS Paper I (Art & Culture: Heritage integration) and GS Paper III (Infrastructure development in western India).
Prelims Trap
The Modified UDAN scheme continues to be funded primarily through a levy on passenger tickets on commercial trunk routes.
Modified UDAN (2026–2036) completely replaces the commercial ticket levy mechanism, transitioning funding directly to the central exchequer.
Static Concepts Connected
What is Viability Gap Funding (VGF) in Indian infrastructure?
- Core definition: A capital grant provided to infrastructure projects that are economically justified but fall short of financial viability due to long gestation periods.
- Nodal agency: Administered by the Department of Economic Affairs, Ministry of Finance, under the Scheme for Financial Support to PPPs in Infrastructure.
- Funding limits: Typically capped at 20% of the total project cost, though sector-specific schemes (like UDAN or green energy) can have distinct budgetary limits.
Cross-Topic Patterns
Civil-military manufacturing synergy
Using civil transport schemes to procure HAL platforms (Dornier, Dhruv) bridges the civil-military industrial gap, utilizing infrastructure budgets to support domestic defense PSUs.
Fiscal policy vs market levies
Shifting UDAN’s funding from market-driven passenger levies to direct exchequer funding reflects a macroeconomic preference for predictable state budgeting over market-reliant, consumer-funded pools.
UPSC 2026 may contrast the original UDAN passenger-levy model with Modified UDAN’s 10-year direct exchequer funding and 5-year VGF.
Linked PYQs · 2
Linked PYQs · 2
- 2024RPSC_PRELIMSGS1
In Rajasthan's Gross Fixed Capital Formation of 2022-23, what is the order in which sectors are arranged from highest to lowest share? A. Construction B. Transport C. Agriculture D. Manufacturing
- 2025RPSC_PRELIMSGS1
Which of the following parks/zones has not been developed by RIICO in Rajasthan?