Investment Boom in Aviation Sector with UDAN 2.0

The Centre is expecting significant investment in the aviation sector through UDAN 2.0, aimed at strengthening regional air connectivity. Civil Aviation Minister Rammohan Naidu said the scheme could attract investments of up to ₹60,000 crore, including around ₹30,000 crore from the central government. So far, 21 states and Union Territories, including Andhra Pradesh and Telangana, have signed MoUs with the Civil Aviation Ministry and the Airports Authority of India for developing regional airports.

Naidu said the Directorate General of Civil Aviation (DGCA) is closely monitoring the operations and financial position of SpiceJet, which is facing financial difficulties. He said the airline has already received ₹150 crore under the Emergency Credit Line Guarantee Scheme. He also said the country currently needs five airlines with fleets of around 100 aircraft each to meet the existing demand.

The minister said the government has not yet taken a final decision on allowing airport operators to hold stakes in airlines and will examine the proposal before deciding. He said there is currently no ban on airport operators holding stakes in domestic airlines. Naidu also called for reasonable airfares during the festive season, while clarifying that the government does not intend to impose a price cap. He noted that airlines are facing higher fuel costs amid the West Asia crisis.