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

Wisdom stories that don’t preach but encourage reflection

The Foundation Of A Fulfilling Life: Lessons from Indian Scriptures Deepam Chatterjee Aleph Books, 264 pages, Rs 899

Citizens of the Bay: Why BIMSTEC matters now

The international order is drifting into a dangerous grey zone as the very powers that built today`s multilateral system begin to chip away at it. The United States has increasingly walked away from global rules and forums when they no longer suit its interests, while China has rushed to fill the vacuum on

PM salutes armed forces on one year of Operation Sindoor

Prime minister Narendra Modi on Thursday saluted the courage, precision and resolve of the armed forces on the completion of one year of Operation Sindoor. The PM said that the armed forces had given a fitting response to those who dared to attack innocent Indians at Pahalgam.&

Supreme Court judge strength to go up by four to 37

The strength of the Supreme Court is set to go up from 33 judges to 37 judges, paving the way for a more efficient and speedier justice. The Union Cabinet on Tuesday approved the proposal for introducing The Supreme Court (Number of Judges) Amendment Bill, 2026 in Parliament to amend The Sup

BJP set to capture West Bengal

The political map of the country is set to be redrawn with the BJP set to win the West Bengal assembly elections, apart from Assam and the union territory of Puducherry. In Kerala, meanwhile, the Congress-led UDF is set to regain power. The filmstar Vijay-led TVK has emerged as the front-runner in Tamil Na

Beyond LPG: Is PNG ready for India’s next cooking fuel transition?

India, the second-largest importer and consumer of LPG after China, faces growing pressure due to supply constraints. Most of India`s LPG imports transit through the Strait of Hormuz, a focal point of global turmoil. Given that LPG forms the backbone of household kitchens and the restaurant industry, any s