By R Chandrakanth
Hyderabad. The Government of India is all set to announce the next phase of India’s regional connectivity programme, UDAN 2 (Ude Desh Ka Aam Nagrik), incorporating specific measures aimed at unlocking helicopter operations, even as industry stakeholders warned that infrastructure delays, regulatory rigidities and safety challenges continue to constrain growth.
Participating in a panel discussion at Wings India 2026, the Executive Director of Regional Connectivity Scheme at the Airports Authority of India, C.V.Deepaksaid the revised scheme which is to be announced post the budget session is designed to address long-standing structural bottlenecks that have slowed the rollout of helicopter services, particularly in remote and mountainous regions.
“We do not have an RCS scheme designed like this anywhere else in the world,” the official said, referring to the Regional Connectivity Scheme. “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.”
Heliport Rollout Slower Than Planned
Of the 64 airports and heliports identified in 2016 for development, only 15 have been operationalised so far. The AAI acknowledged the shortfall, citing land acquisition hurdles, delayed state government clearances and procedural bottlenecks as primary reasons.“In many cases, bids have happened, but land clearance or state-level approvals have not come through,” the official said, adding that infrastructure creation alone does not guarantee operational readiness.
A similar pattern has emerged under the broader regional connectivity framework. Operators frequently bid for multiple helicopter routes but ultimately launch services on only a fraction of them. Aircraft induction delays, regulatory approvals and financial constraints have slowed commencement of services even where basic infrastructure exists.
Industry participants argued that while the Centre designs enabling policies, implementation often stalls at the state level, where awareness of aviation procedures and central guidelines may be uneven.
New DGCA Circular on Helicopter Allocation
In a development welcomed by operators, panellists referred to a December 2025 DGCA circular directing airport operators to earmark designated space for helicopter operations.The circular reportedly lays down guidance for traffic management, aiming to reduce operational conflict between fixed-wing and rotary-wing aircraft, a long-standing complaint from helicopter operators who say they are frequently subject to airline-centric procedures.
“Unless you deconflict fixed-wing and rotary-wing traffic, congestion is inevitable,” one panellist said, noting that international airports in the US and Europe routinely adopt such differentiated procedures.However, implementation remains key. Participants emphasised the need to ease slot allocation norms at metro airports and streamline lower-altitude access bands for helicopter movement.
35 Helicopters Inducted in 2025
From a fleet perspective, the past year has seen moderate expansion. Around 35 helicopters were inducted in 2025. However, industry representatives noted that nearly 30 percent of these were replacements for ageing aircraft, meaning net fleet growth was limited.India currently has approximately 60 non-scheduled operator permit (NSOP) holders operating around 225 helicopters. If private and government aircraft are included, the broader fleet size stands close to 290.
Despite the recovery from previous decline, when fleet numbers had dropped sharply from 294 to significantly lower levels, operators said the sector remains under-scaled relative to national requirements.
The Himalayan states, including Himachal Pradesh, Uttarakhand and parts of the Northeast, continue to rely heavily on helicopters for connectivity, disaster response and infrastructure development. Demand for services such as power line construction, geographical mapping and defence logistics has risen steadily.However, operators with mountain-flying expertise say they are struggling to meet this demand. In some cases, foreign-registered helicopters with trained crews are brought in under special permits to fill gaps.
High Capex
High capital expenditure remains the most cited barrier to expansion. With most helicopters imported, acquisition costs are substantial. Industry leaders argued that India’s dependence on offshore leasing companies renders business models financially fragile.Calls were renewed for strengthening the domestic aircraft leasing ecosystem, particularly through GIFT City, which is being positioned as an aviation leasing hub. A more robust Indian leasing framework, stakeholders said, would reduce indirect operating costs and improve negotiating leverage with manufacturers.
The 2.5 percent import duty imposed in 2008 was again flagged as a major capital burden. Operators also urged rationalisation of GST and uniform tax treatment across states to improve financial sustainability.Ground handling and terminal charges at airports were described as disproportionately high for general and business aviation, further affecting viability.
Night Operations and Regulatory Differentiation
Regulatory rigidities, particularly around night operations, came under scrutiny. Helicopter operators said restrictions limit their ability to perform ISR missions, medical evacuations and certain offshore operations after dark.Even in emergency situations, such as casualty evacuation from offshore rigs, procedural constraints can force diversions, delaying response times.Globally, 24/7 helicopter operations are common. In India, however, fixed-wing regulations are often applied to rotary-wing operations, creating operational friction.
Speakers advocated for a more nuanced classification system for air transport, moving beyond the current broad categories of scheduled, commuter, non-scheduled and non-commercial, and adopting a risk-based framework aligned to aircraft type and mission profile.
Safety Oversight
Security clearances were also identified as a recurring operational hurdle. Operators described situations where multiple agency approvals and perimeter requirements delay landings at airports or district helipads. A past initiative that sought to establish at least one helipad in every district, complete with coordinates and standard operating procedures for police clearances, was recalled, though its status remains unclear.
Safety formed a significant portion of the debate.India did not establish an independent Aircraft Accident Investigation Bureau (AAIB) until 2012, with investigations previously handled within the DGCA. Since its formation, the AAIB has investigated more than 240 helicopter-related cases, completing over 200. A panellist said accident trends have improved markedly. While 43–46 accidents were recorded in 2014–15 alone, the total number from 2015 to 2025 stands at 42, indicating a significant reduction.
However, Controlled Flight into Terrain (CFIT) remains a concern. Comparative studies conducted by the AAIB between 2012 and 2023 show that while India’s overall accident profile broadly aligns with global offshore operations, CFIT occurrences are proportionally higher.CFIT incidents involve serviceable aircraft flown by qualified pilots inadvertently impacting terrain, often due to situational awareness limitations or adverse weather. The AAIB has urged operators to strengthen terrain awareness training and operational discipline, particularly in mountainous regions.
The ministry is also planning multipurpose helipads equipped with basic navigational and safety features, with an estimated allocation of ₹10 crore per helipad. These facilities are intended to enhance landing safety and streamline security coordination.
A Sector at a Crossroads
The discussion underscored that infrastructure is only one part of a complex ecosystem. Fuel logistics, pilot training, financial sustainability, regulatory clarity and state-level coordination all shape operational viability.
While accident rates have declined and institutional oversight has strengthened, stakeholders agreed that India’s helicopter sector remains constrained by fragmented implementation and structural bottlenecks.
If UDAN 2 successfully integrates helicopter-specific reforms, and if infrastructure, leasing and regulatory differentiation are addressed in tandem, the sector could expand significantly, particularly in remote connectivity, medical evacuation, disaster relief and offshore energy support.For now, the message from Wings India 2026 was one of cautious optimism: policy momentum is building, but execution will determine whether India’s helicopter industry truly takes off.
