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Andrew Bonwick
Vice President of Product Development at Relm Insurance
Madhav Sheth
CEO of Ai+ Smartphone
Stephen Rose
CEO Render Networks
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.
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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.
