Court Directs Union of India to Explore Alternatives, Ensure Effective Utilization of Funds, and Include Shimla in Modified UDAN Scheme
In a significant move, the Himachal Pradesh High Court has issued directives to the Union of India concerning the exclusion of Shimla sector from the Modified UDAN Scheme-2026. The court, in its judgment dated May 6, 2026, highlighted the need for effective utilization of the Rs.116.70 crores spent on Shimla Airport under the Regional Connectivity Scheme (RCS) and stressed the importance of ensuring connectivity to Shimla, the only state capital yet to be included in the scheme.
The bench, comprising Chief Justice G.S. Sandhawalia and Justice Bipin C. Negi, underscored the urgency of the matter, particularly given the commencement of the tourist season. The court directed the Union of India to file a comprehensive affidavit detailing a timeline for including Shimla in the Modified UDAN Scheme. Additionally, the court instructed the exploration of alternative connectivity options, such as helicopter services, to address the challenges posed by the unavailability of small aircraft like ATR-42, ATR-72, and Q400.
During the proceedings, Mr. Samir Kumar Sinha (IAS), Secretary, Ministry of Civil Aviation, appeared via video conferencing, acknowledging the expiration of the previous UDAN Scheme in October 2025 and the subsequent cessation of flights to Shimla. He assured the court of efforts to recommence flight operations, with Alliance Air likely to start services by May 21, 2026.
The court has also sought clarification on the funding obligations under the Modified UDAN Scheme, directing the Union of India to reflect on the Viability Gap Funding (VGF) structure in its affidavit. The court emphasized that the huge sum spent on the airport should not result in wastage of public funds, and urged the Union to explore the possibility of other airlines operating in the Shimla sector.
The judgment also mentioned a query raised by Shri Harsh Mahajan, Member of Rajya Sabha, concerning the discontinuation of the Delhi sector flights upon completion of the three-year VGF tenure. The court noted the government's announcement to launch the Modified UDAN Scheme aimed at increasing regional connectivity to 120 new destinations, while remaining silent on helicopter services.
The court has scheduled further proceedings for May 14, 2026, directing Mr. Sinha to join via video conferencing to address the court's concerns and ensure timely action on the directives.
Bottom Line:
Regional Connectivity Scheme (RCS) under UDAN - Exclusion of Shimla sector from Modified UDAN Scheme-2026 - Directions issued to Union of India to effectively utilize Shimla Airport, ensure connectivity, and explore alternatives, including helicopter services, for the Shimla sector.
Statutory provision(s): Regional Connectivity Scheme (RCS), Modified UDAN Scheme-2026, Viability Gap Funding (VGF)
Court on its own motion v. State of HP, (Himachal Pradesh)(DB) : Law Finder Doc id # 2895114
