Government clears revamped UDAN scheme with ₹28,840 crore outlay to boost regional connectivity
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the launch of the Regional Connectivity Scheme – Modified UDAN, with a total outlay of ₹28,840 crore. The scheme will be implemented over a 10-year period from FY 2026–27 to FY 2035–36, with full budgetary support from the Government of India.
The revamped programme aims to deepen regional air connectivity, especially in underserved and unserved areas, while making air travel more affordable for the common citizen. It is also expected to drive economic growth, trade and tourism in Tier-2 and Tier-3 cities, improve emergency response and healthcare access in remote regions, and strengthen the domestic aerospace ecosystem under the Atmanirbhar Bharat initiative.
A key focus of the modified scheme is infrastructure expansion. The government plans to develop 100 new airports from existing unserved airstrips, with a capital outlay of ₹12,159 crore over the next eight years. To address sustainability concerns, operational and maintenance support will be extended for up to three years for regional aerodromes, capped at ₹3.06 crore annually per airport and ₹0.90 crore for heliports and water aerodromes, with a total estimated cost of ₹2,577 crore covering around 441 facilities.
In addition, 200 modern helipads will be developed at a cost of ₹3,661 crore, targeting remote, hilly, island and aspirational regions to improve last-mile connectivity and emergency services.
The scheme also provides for ₹10,043 crore in viability gap funding (VGF) over 10 years to support airline operators on regional routes, recognising the need for sustained market development.
In a push towards self-reliance, the government will procure two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier 228 aircraft for Alliance Air to address fleet shortages in challenging terrains.
Launched in October 2016, the UDAN scheme has significantly expanded regional connectivity over the past nine years. As of February 28, 2026, a total of 663 routes have been operationalised across 95 airports, heliports and water aerodromes, with over 3.41 lakh flights carrying more than 162.47 lakh passengers.
The scheme has improved connectivity in remote and difficult regions while boosting tourism and regional economies, laying the groundwork for the next phase of expansion under the modified UDAN programme, aligned with the broader vision of Viksit Bharat 2047.
