Union Cabinet clears 10-year ‘Modified UDAN’ plan with $3.11-bn outlay to expand regional air connectivity
New Delhi, March 28. The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the launch of a revamped UDAN Scheme – titled Modified UDAN – for a 10-year period from FY 2026–27 to FY 2035–36. The programme will be implemented with a total outlay of ₹28,840 crore ($3.11 billion) backed by budgetary support from the Government of India, with a focus on deepening regional air connectivity across underserved and unserved parts of the country.
The updated scheme is designed to strengthen air links to Tier-2 and Tier-3 cities, improve last-mile connectivity in remote and hilly areas, support affordable air travel, and ensure the long-term viability of regional airports and airline operators. It is also aligned with the government’s broader Viksit Bharat 2047 vision and the push for indigenous aerospace capability under ‘Aatmanirbhar Bharat’ (Self-reliant India).
100 new airports from unused airstrips
A key component of the scheme is capital investment in aviation infrastructure. Under Modified UDAN, 100 airports will be developed from currently unserved or underutilised airstrips over the next eight years. This component alone carries an outlay of ₹12,159 crore and is expected to significantly widen the aviation network in regions that currently lack reliable air connectivity.
Operational support for regional aerodromes
Recognising that many regional airports struggle with high operating costs and limited revenue, the scheme provides financial support for operations and maintenance (O&M) for three years. The assistance is capped at ₹3.06 crore per year for each airport and ₹0.90 crore per year for heliports and water aerodromes. Around 441 aerodromes are expected to benefit, with an estimated allocation of ₹2,577 crore.
200 modern helipads for remote regions
To improve access in hilly, island, aspirational and difficult terrains, the government plans to construct 200 modern helipads over the next eight years. Each helipad is estimated to cost ₹15 crore, translating into a total investment of ₹3,661 crore. These facilities are expected to improve emergency response, medical evacuation capability, and last-mile connectivity in priority districts.
Viability Gap Funding for airlines
The scheme also extends long-term Viability Gap Funding (VGF) support to airline operators flying regional routes under UDAN. A total of ₹10,043 crore has been earmarked over 10 years to help airlines sustain operations on routes that may take longer to become commercially viable.
Push for indigenous aircraft
As part of the ‘Aatmanirbhar Bharat’ focus, the Cabinet has approved the procurement of two Hindustan Aeronautics Limited Dhruv helicopters for Pawan Hans Limited and two Dornier aircraft for Alliance Air. These aircraft will support operations in remote and challenging terrains while boosting domestic aerospace manufacturing.
Building on UDAN’s track record
The original UDAN scheme, launched in October 2016, aimed to make air travel affordable and connect smaller cities to the national aviation grid. Over 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 carried over 162 lakh passengers under the programme, helping expand connectivity to remote and island regions while encouraging the growth of regional airlines.
The Modified UDAN scheme builds on this foundation, seeking to scale up infrastructure, sustain airline participation, and embed regional aviation as a key driver of economic growth, tourism, healthcare access, and emergency services across India.
