New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Modified Regional Connectivity Scheme (UDAN) for 10 years from FY 2026-27 to FY 2035-36.
The scheme will be implemented with a total outlay of Rs 28,840 crore with budgetary support from the Union government.
The scheme aims to expand regional air connectivity by linking underserved and unserved areas across the country. It is expected to strengthen economic activity by boosting trade, tourism, and business opportunities in Tier-2 and Tier-3 cities, according to an official statement.
The initiative will also make air travel more affordable for common citizens and improve access to emergency services and healthcare in remote, hilly, and island regions. In addition, it will enhance the financial sustainability of regional airports and airline operators while promoting the growth of the indigenous aerospace sector under the Atmanirbhar Bharat initiative. The scheme is also aligned with the broader goal of achieving Viksit Bharat 2047.
Under the scheme, the government plans to develop 100 airports by upgrading existing unserved airstrips. This infrastructure push is aimed at expanding aviation reach and strengthening regional connectivity, with an estimated investment of Rs 12,159 crore over the next eight years.
To address the high operational costs of regional aerodromes, the scheme includes financial support for operation and maintenance. Assistance will be provided for three years, capped at Rs 3.06 crore per airport annually and Rs 0.90 crore per heliport or water aerodrome. The total estimated allocation for this component is Rs 2,577 crore, covering around 441 aerodromes.
The scheme also focuses on improving last-mile connectivity in difficult terrains by developing 200 modern helipads. Each helipad is estimated to cost Rs 15 crore, with a total projected investment of Rs 3,661 crore over the next eight years, particularly targeting remote and aspirational districts.
To ensure the viability of regional routes, airline operators will receive financial support through Viability Gap Funding. A total of Rs 10,043 crore has been earmarked over 10 years to support sustained operations and encourage participation from airlines.
In a move to strengthen domestic aviation capabilities, the scheme includes the procurement of two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air. This step is aimed at addressing the shortage of aircraft for operations in remote areas while promoting indigenous manufacturing.
The original UDAN scheme, launched in October 2016, was designed to make air travel affordable and improve connectivity to smaller cities. Over the past nine years, 663 routes have been operationalised across 95 airports, heliports, and water aerodromes. More than 3.41 lakh flights have been conducted, carrying over 162.47 lakh passengers. The scheme has significantly improved connectivity in remote and underserved regions while supporting the growth of regional airlines.
