The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the launch and implementation of the Modified Regional Connectivity Scheme (UDAN) for a period of ten years, spanning FY 2026–27 to FY 2035–36. The scheme entails a total outlay of Rs 28,840 crore, backed by budgetary support from the Government of India, and is aimed at strengthening regional air connectivity and enhancing accessibility to underserved and unserved regions across the country, the Ministry of Civil Aviation announced on Wednesday, March 25, 2026.
Impact of the Initiative
The initiative is expected to significantly improve connectivity to underserved and unserved areas while catalysing economic growth, trade, and tourism in Tier-2 and Tier-3 cities. It seeks to support affordable air travel for common citizens and improve emergency response and healthcare access, particularly in hilly and remote regions. The scheme will also enhance the viability of regional airports and airline operators, while promoting the indigenous aerospace sector under the Atmanirbhar Bharat initiative and contributing to the broader vision of Viksit Bharat 2047.
Development of Aerodromes
A key component of the scheme involves the development of 100 airports by upgrading existing unserved airstrips, with a capital expenditure of Rs 12,159 crore over the next eight years.
Operation & Maintenance (O&M) of Aerodromes
Additionally, recognising the high operational costs and limited revenue potential of regional aerodromes, the government will provide operation and maintenance (O&M) support for three years. This support is capped at Rs 3.06 crore per annum per airport and Rs 0.90 crore per annum per heliport or water aerodrome, with an estimated allocation of Rs 2,577 crore covering approximately 441 aerodromes.
Development of Modern Helipads
To further address connectivity challenges in difficult terrains such as hilly, island, and aspirational regions, the scheme proposes the development of 200 modern helipads at an estimated cost of Rs 3,661 crore over eight years. These helipads will play a crucial role in enhancing last-mile connectivity and strengthening emergency services.
Viability Gap Funding (VGF)
The scheme also includes a provision for Viability Gap Funding (VGF) to support airline operators in sustaining operations on regional routes. A total of Rs 10,043 crore has been earmarked for this purpose over the ten-year period, ensuring continued connectivity while allowing time for market development.
Atmanirbhar Bharat Aircraft Acquisition
In line with the Atmanirbhar Bharat vision, the government has also proposed the acquisition of indigenous aircraft, including two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air, to address the shortage of small fixed-wing aircraft and helicopters required for operations in remote and difficult regions.
UDAN Scheme Background
According to the Ministry of Civil Aviation, the Modified UDAN Scheme builds on the original UDAN initiative launched in October 2016 with the objective of making air travel affordable and strengthening connectivity to Tier-2 and Tier-3 cities.
Over the past nine years, 663 routes have been operationalised across 95 airports, heliports, and water aerodromes as of February 28, 2026. 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, boosting tourism, healthcare access, and emergency services, while fostering the growth of regional aviation in India.
