Cabinet approves modified UDAN -Governance Now

Cabinet approves modified UDAN

For a period of ten years from FY 2026-27 to FY 2035-36 with a total outlay of Rs.28,840 crore

GN Bureau | March 25, 2026

#Aviation #UDAN

(File photo: Governance Now)

The union cabinet chaired by prime minister Narendra Modi has approved the launch and implementation of the Regional Connectivity Scheme – Modified UDAN for a period of ten years from FY 2026-27 to FY 2035-36 with a total outlay of Rs.28,840 crore with the budgetary support of the Government of India.

Impact:

Enhanced regional air connectivity to underserved and unserved areas.

Boost to economic growth, trade and tourism in Tier-2 and Tier-3 cities.

Support affordable air travel for common citizens.

Improved emergency response and healthcare access in remote and hilly regions.

Greater viability and sustainability for regional aerodromes and airline operators.

Promotion of the indigenous aerospace sector under Atmanirbhar Bharat.

Progress towards Viksit Bharat 2047 goal.

The key components of the scheme are as under:

(a) Development of Aerodromes (CAPEX)

Under the Modified UDAN Scheme, it is proposed to develop 100 airports from existing unserved airstrips to enhance regional connectivity, in line with the Viksit Bharat 2047 vision of infrastructure expansion and transforming India into a globally competitive aviation ecosystem with a total outlay of Rs.12,159 crore over the next eight years.

(b) Operation & Maintenance (O&M) of Aerodromes

Given the high recurring O&M costs and limited revenue streams for Regional Connectivity Scheme (RCS)-only aerodromes, the Scheme proposes to provide O&M support for three years capped at Rs.3.06 crore per annum per airport and Rs.0.90 crore per annum per heliport/water aerodrome, estimated at Rs.2,577 crore for around 441 aerodromes.

(c) Development of Modern Helipads

To address connectivity challenges in hilly, remote, island and aspirational regions, the Scheme proposes developing 200 modern helipads at Rs.15 crore each, amounting to a total requirement of Rs.3,661 crore over the next eight years (inflation-adjusted), focused on priority and aspirational districts to improve last-mile connectivity and emergency response.

(d) Viability Gap Funding (VGF)

Under the Regional Connectivity Scheme, airline operators receive financial support in the form of VGF for operating awarded routes. Recognising the need for longer market development, VGF support to airline operators is proposed amounting to Rs.10,043 crore over 10 years.

(e) Atmanirbhar Bharat Aircraft Acquisition

To address the shortage of small fixed-wing aircraft and helicopters required for operations in remote and difficult terrains and to advance the Atmanirbhar Bharat vision, the scheme also proposes to procure two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air.

Background:

The original UDAN Scheme was launched in October 2016 with the objective of making air travel affordable and strengthening connectivity to Tier-2 and Tier-3 cities.

Over nine years of implementation:

663 routes have been operationalised across 95 airports, heliports and water aerodromes (as on 28 February 2026).

More than 3.41 lakh flights have been operated, carrying 162.47 lakh passengers.

Connectivity has been established in remote, hilly and island regions, boosting tourism, healthcare access and emergency services.

The scheme has fostered growth in regional airlines and diverse fleet operations, laying a strong foundation for the Modified UDAN Scheme.

Comments

Other News

In Arunachal, a river we call mother

In Arunachal Pradesh, the Siang is not just a river. For many of us, especially the Adi people, it is part of our family. Our grandparents fished in it. Children learned to swim in it. Our farms drink from it. When someone says a huge dam will be built on it, we do not hear the word "project".

A new retelling of the Mahabharata delves into key moments

In a time when every decision carries consequences and questions of ambition, power, loyalty, identity and moral choice continue to shape our lives, Dr. Arun Krishnan’s new book, ‘Mahakshana’ (Penguin India) offers a strikingly relevant retelling of the Mahabharata.

Cabinet approves viability gap funding to develop grid-scale energy storage systems

The Union Cabinet, chaired by PM Narendra Modi, has approved the Viability Gap Funding (VGF) Scheme for Development of Grid-Scale Energy Storage Systems, with a total financial support of Rs.14,500 crore for the period FY 2026-27 to FY 2030-31. The scheme aims to support the development o

Cabinet creates a pathway to absorb Agniveers in Defence Forces

An objective assessment in terms of organisational requirements and operational efficiency has brought out the outstanding performance of Agniveers in terms of skills, motivation levels, physical fitness and technological prowess. As envisaged earlier, based on merit, 25% of Agniveers will be offered reg

Modi inaugurates, lays foundation stone of Pune Metro projects

Prime minister Narendra Modi inaugurated and laid the foundation stone for Pune Metro projects worth around ₹21,800 crore on Tuesday through video conferencing. Addressing the gathering on the occasion, the PM extended warm Diwali greetings to the people of Pune and Maharashtra and remarked that f

Wired for good: Building sustainable cities with AI

The First Industrial Revolution in the 18th-19th centuries ushered in a paradigm shift in how cities were imagined. Fueled by railways, factories and grids, and obsessed with speed and scale, it was an ode to efficiency, which spurred unprecedented economic growth. Now, as the Fourth Industrial Revolutio