Cabinet Approves ₹28,840 Crore Modified UDAN Scheme

New Delhi, March 25, 2026 — The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Modified UDAN Scheme with a massive outlay of ₹28,840 crore to strengthen regional air connectivity across India.

10-Year Plan to Transform Regional Aviation

The revamped UDAN (Ude Desh ka Aam Nagrik) scheme will be implemented for 10 years (FY 2026–27 to FY 2035–36).

The initiative aims to:

Improve connectivity in underserved and remote regions
Make air travel affordable for common citizens
Boost economic growth in Tier-II and Tier-III cities

100 New Airports to Be Developed

A major highlight of the scheme is the development of 100 new airports from existing airstrips.

Union Minister Ashwini Vaishnaw stated that:

₹12,159 crore will be allocated for airport infrastructure
The project will span the next eight years
It aligns with India’s Viksit Bharat 2047 vision

Focus on Remote and Hilly Areas

To improve connectivity in difficult terrains, the scheme includes:

Development of 200 modern helipads
Special focus on hilly, remote, and island regions
Estimated cost of ₹3,661 crore

This move will enhance accessibility and emergency response capabilities.

Operational Support for Airports

The government will provide Operation & Maintenance (O&M) support for regional airports:

Up to ₹3.06 crore annually per airport
₹0.90 crore for heliports and water aerodromes
Total estimated support: ₹2,577 crore

This ensures sustainability for low-traffic airports.

Support for Airlines Through VGF

To keep regional routes viable, the scheme includes Viability Gap Funding (VGF):

₹10,043 crore allocated over 10 years
Encourages airlines to operate in less profitable routes

As a result, more routes will remain operational and accessible.

Boost to Indigenous Aviation Sector

Under the Atmanirbhar Bharat initiative, the government will:

Procure HAL Dhruv helicopters for Pawan Hans
Acquire HAL Dornier aircraft for Alliance Air

These aircraft will support operations in challenging terrains where conventional aircraft cannot operate efficiently.

Strong Performance of UDAN So Far

Since its launch in 2016, the UDAN scheme has achieved:

663 routes operationalized
95 airports, heliports, and water aerodromes connected
Over 3.41 lakh flights conducted
162.47 lakh passengers served

The Modified UDAN Scheme marks a major step toward enhancing regional connectivity and making air travel more inclusive. With strong investment and infrastructure development, the initiative is set to transform India’s aviation landscape and drive economic growth in smaller cities.