Centre launches modified UDAN scheme with an outlay of Rs 28,840 crore

The Union Cabinet on Wednesday approved the launch of the Modified UDAN (Ude Desh Ka Aam Nagrik) Scheme for a period of 10 years (FY 2026–27 to FY 2035–36). The scheme will be implemented with a total outlay of Rs 28,840 crore, backed by budgetary support from the Government of India.

The revamped regional connectivity scheme aims to significantly expand India’s aviation network, especially in underserved and unserved regions, while making air travel more affordable for the common citizen.

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Under the modified scheme, the government expects to enhance regional air connectivity, particularly in Tier-2 and Tier-3 cities, while boosting economic growth, trade, and tourism. It is also expected to improve emergency response and healthcare access in remote and hilly areas.

Additionally, the initiative seeks to ensure better viability for regional airports and airlines, while promoting indigenous aerospace manufacturing under the Atmanirbhar Bharat initiative. The scheme aligns with India’s long-term Viksit Bharat 2047 vision.

The scheme proposes the development of 100 airports from currently unserved airstrips, with a capital expenditure of Rs 12,159 crore over the next eight years. This is aimed at strengthening infrastructure and expanding the country’s aviation footprint.

To address high operational costs and limited revenue at smaller airports, the government will provide O&M support for three years. The support is capped at Rs 3.06 crore annually per airport and Rs 0.90 crore per heliport or water aerodrome, with a total estimated allocation of Rs 2,577 crore covering around 441 facilities.

To improve last-mile connectivity in difficult terrains such as hilly, remote, and island regions, the scheme includes the construction of 200 modern helipads at a total cost of Rs 3,661 crore over eight years. These will primarily target aspirational and priority districts.

Airline operators will continue to receive financial support through VGF to operate regional routes. The government has allocated Rs 10,043 crore over 10 years to ensure sustained operations and route viability.

To address the shortage of small aircraft in remote areas, the scheme proposes procuring two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air, thereby boosting domestic manufacturing capabilities.

The UDAN scheme was launched in October 2016 with the objective of making air travel affordable and improving connectivity to smaller cities. Over the past nine years, the scheme has operationalised 663 routes across 95 airports, heliports, and water aerodromes (as of February 28, 2026), as per the government data.

During this period, more than 3.41 lakh flights have been operated, carrying over 162.47 lakh passengers. The initiative has played a crucial role in connecting remote and underserved regions, while supporting the growth of regional airlines and diversified fleet operations.