- The government is preparing the next phase of regional connectivity, with a clear push toward helicopter operations, aiming to address long-standing issues around tenure length, subsidy design, and business predictability.
- Slow execution on the ground continues to undermine policy intent, with airport and heliport readiness, state-level clearances, and delayed aircraft deployment limiting the number of awarded routes that actually become operational.
- Operators argue that regulatory rigidities, modest fleet growth, high acquisition and operating costs, and unresolved safety and night operations constraints continue to weigh heavily on the viability of helicopter connectivity in India.
The Government of India is preparing to unveil the next phase of its regional connectivity programme, UDAN 2 (Ude Desh Ka Aam Nagrik), with a sharper focus on helicopter operations, a segment long viewed as critical for remote connectivity but constrained by structural bottlenecks. Announced on the sidelines of Wings India 2026, the proposed reforms signal an attempt to recalibrate policy support in favour of rotary-wing aviation, even as industry stakeholders caution that infrastructure delays, regulatory rigidities and high capital costs continue to impede growth.
Speaking during a panel discussion, C.V. Deepak, Executive Director of the Regional Connectivity Scheme (RCS) at the Airports Authority of India (AAI), indicated that the revised framework is designed specifically to address many of the issues raised by helicopter operators over the past several years. The formal announcement is expected after the current budget session.
“We do not have an RCS scheme designed like this anywhere else in the world,” Deepak said, underlining the uniqueness of India’s regional connectivity model. “UDAN 2 will take care of many of the issues that operators have raised. The agreement period is likely to be longer, and viability gap funding mechanisms are being refined.”
The extension of concession periods and adjustments to viability gap funding (VGF) are seen as central to improving business predictability. Helicopter operators, whose economics are highly sensitive to utilisation rates and financing costs, have consistently argued that short agreement tenures and rigid subsidy structures limit long-term fleet planning.
Infrastructure Gaps Persist
Despite policy intent, implementation remains uneven. Of the 64 airports and heliports identified for development under earlier phases of the scheme in 2016, only 15 have been operationalised. He attributed the shortfall to land acquisition hurdles, delayed state government clearances and procedural bottlenecks.
“In many cases, bids have happened, but land clearance or state-level approvals have not come through,” Deepak acknowledged, adding that infrastructure creation alone does not automatically translate into operational readiness.
The pattern is mirrored in route awards. Operators frequently secure multiple helicopter routes under UDAN but commence services on only a fraction. Aircraft induction delays, regulatory approvals and financing constraints have slowed deployment, even where physical infrastructure exists. Industry participants pointed out that while the Centre frames enabling policy, execution often stalls at the state level, where aviation processes and compliance requirements may not be uniformly understood.
Regulatory Guidance and Traffic Management
One development welcomed by operators is a December 2025 DGCA circular directing airport operators to earmark designated areas for helicopter operations. The circular lays down guidance to better manage traffic flows between fixed-wing and rotary-wing aircraft, addressing a longstanding grievance that helicopter services are often subordinated to airline-centric procedures at busy airports.
Panellists argued that unless fixed-wing and rotary-wing traffic are operationally deconflicted, congestion and slot constraints will persist. International airports in the US and Europe typically follow differentiated procedures for helicopters, particularly in approach paths and altitude bands. Industry representatives urged faster implementation of the circular, along with more flexible slot allocation norms at metro airports and streamlined access to lower-altitude corridors.
Fleet expansion remains modest. Approximately 35 helicopters were inducted in 2025, but nearly 30 per cent were replaced by ageing aircraft, resulting in limited net growth. India currently has around 60 non-scheduled operator permit (NSOP) holders operating about 225 helicopters. Including private and government aircraft, the broader fleet stands near 290, a figure operators argue is insufficient for a country of India’s geographic and economic scale.
High capital expenditure continues to be the most cited barrier. With most helicopters imported, acquisition costs are substantial, and dependence on offshore leasing firms increases financial vulnerability. Industry leaders renewed calls for strengthening India’s domestic aircraft leasing ecosystem, particularly through GIFT City, which is being positioned as an aviation leasing hub. A more robust local leasing framework, they contend, would reduce indirect costs and improve negotiating leverage.
The 2.5 per cent import duty imposed in 2008 remains a sore point, alongside GST complexities and varying tax treatment across states. Ground handling and terminal charges at airports were also described as disproportionately high for helicopter and general aviation operations, further straining viability.
Operational Issues
Regulatory rigidities, particularly around night operations, were highlighted as another constraint. Operators noted that restrictions limit their ability to conduct ISR missions, medical evacuations and certain offshore operations after dark. In some emergency scenarios, procedural constraints can delay response times. Globally, 24/7 helicopter operations are routine; in India, however, fixed-wing regulatory frameworks are often applied to rotary-wing aircraft.
Panellists advocated moving towards a more nuanced, risk-based regulatory classification aligned to aircraft type and mission profile, rather than relying on broad categories such as scheduled or non-scheduled.
On safety, the establishment of the Aircraft Accident Investigation Bureau (AAIB) in 2012 marked a structural improvement in oversight. Since its formation, the AAIB has investigated over 240 helicopter-related cases, completing more than 200. Accident trends have shown improvement: while 43–46 accidents were recorded in 2014–15 alone, the total between 2015 and 2025 stands at 42.
However, Controlled Flight into Terrain (CFIT) remains a concern, particularly in mountainous regions. Comparative studies indicate that while India’s overall accident profile broadly aligns with global offshore operations, CFIT incidents are proportionally higher. Strengthened terrain awareness training and operational discipline have been recommended.
The ministry, it was mentioned, is also planning multipurpose helipads equipped with basic navigational and safety features, with an estimated allocation of ₹10 crore per facility. These are intended to improve landing safety and streamline coordination with local authorities.
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