Cabinet Approves Rs. 28,840 Crore Modified UDAN Scheme to Boost Regional Air Connectivity.
New Delhi:
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the revamped Regional Connectivity Scheme – Modified UDAN, with a total financial outlay of Rs. 28,840 crore. The scheme will be implemented over a ten-year period from FY 2026–27 to FY 2035–36, with budgetary support from the Government of India.
Major Push for Regional Connectivity
The Modified UDAN (Ude Desh ka Aam Naagrik) scheme aims to significantly expand air connectivity across India, especially targeting underserved and unserved regions. The initiative is expected to:
Improve access to affordable air travel for common citizens
Boost economic growth, trade, and tourism in Tier-2 and Tier-3 cities
Strengthen healthcare access and emergency response in remote and hilly areas
Enhance the sustainability of regional airports and airline operators
Support indigenous aviation manufacturing under the Atmanirbhar Bharat initiative
Contribute to India’s long-term development vision of Viksit Bharat 2047
Key Components of the Modified UDAN Scheme
1. Development of 100 Airports
A major focus of the scheme is infrastructure expansion. Around 100 new airports will be developed from currently unserved airstrips, with a capital expenditure of ₹12,159 crore over the next eight years. This move aims to create a robust aviation ecosystem and improve regional accessibility.
2. Operation & Maintenance Support
Recognizing the financial challenges faced by smaller airports, the government will provide O&M support for up to three years:
Rs. 3.06 crore annually per airport
Rs. 0.90 crore annually per heliport or water aerodrome
This support, estimated at ₹2,577 crore, will cover around 441 aerodromes.
3. Development of 200 Helipads
To improve last-mile connectivity in difficult terrains such as hilly, remote, and island regions, the scheme includes the construction of 200 modern helipads. With an allocation of Rs. 3,661 crore, these will be developed primarily in aspirational districts and priority areas, enhancing both connectivity and emergency services.
4. Viability Gap Funding (VGF)
To ensure the financial viability of regional routes, the government will continue providing Viability Gap Funding to airline operators. A total of Rs. 10,043 crore has been earmarked over ten years, allowing airlines more time to develop sustainable operations in emerging markets.
5. Boost to Indigenous Aviation
In line with the Atmanirbhar Bharat initiative, the scheme includes procurement of:
Two HAL Dhruv helicopters for Pawan Hans
Two HAL Dornier aircraft for Alliance Air
This move is expected to strengthen domestic manufacturing capabilities and address the shortage of aircraft suited for remote operations.
Strong Foundation from Original UDAN Scheme
The original UDAN scheme, launched in October 2016, has already made notable progress in enhancing regional connectivity across India. As of February 28, 2026:
663 routes have been operationalised
95 airports, heliports, and water aerodromes connected
Over 3.41 lakh flights operated
Around 162.47 lakh passengers transported
The initiative has significantly improved connectivity in remote and hilly regions, while also promoting tourism, healthcare access, and regional economic development.
Looking Ahead
The Modified UDAN scheme is expected to build upon this success by expanding infrastructure, supporting airline operations, and improving accessibility across India’s diverse geography. With a strong focus on inclusivity and sustainability, the scheme marks a major step toward transforming India into a globally competitive aviation hub.
