Cabinet Greenlights Rs 28,840 Crore Modified UDAN Scheme to Revolutionize Regional Air Connectivity
In a landmark decision aimed at transforming India's aviation landscape, the Union Cabinet, under the leadership of Prime Minister Narendra Modi, has approved the launch and implementation of the Regional Connectivity Scheme - Modified UDAN. This ambitious initiative, with a total outlay of Rs 28,840 crore, is set to run for ten years from the fiscal year 2026-27 to 2035-36, bolstered by substantial budgetary support from the Government of India.
Enhancing Connectivity and Economic Growth
The primary objective of the Modified UDAN scheme is to significantly enhance regional air connectivity to underserved and unserved areas across the country. By supporting affordable air travel for common citizens, the government aims to stimulate economic growth, boost trade, and promote tourism in Tier-II and Tier-III cities. During a media briefing, Union Minister Ashwini Vaishnaw elaborated on the scheme's comprehensive implementation framework, highlighting its potential to create a more inclusive and competitive aviation ecosystem.
Infrastructure Development and Emergency Response
A critical component of the scheme involves the development of 100 airports from existing unserved airstrips, with an allocation of Rs 12,159 crore over the next eight years under capital expenditure. This infrastructure expansion is designed not only to improve regional connectivity but also to enhance emergency response capabilities and healthcare access in remote and hilly regions. Additionally, the scheme addresses the operational challenges of regional aerodromes by providing operation and maintenance (O&M) support for three years, capped at Rs 3.06 crore annually per airport and Rs 0.90 crore for heliports and water aerodromes, with an estimated total requirement of Rs 2,577 crore for approximately 441 aerodromes.
Helipads and Viability Gap Funding
To tackle connectivity issues in difficult terrains, the scheme includes the development of 200 modern helipads, focusing on priority and aspirational districts. Each helipad is projected to cost around Rs 15 crore, totaling Rs 3,661 crore over eight years. Furthermore, to ensure the sustainability of regional routes, the government has proposed a Viability Gap Funding (VGF) allocation of Rs 10,043 crore over the ten-year duration, enabling necessary market development and supporting airline operators.
Promoting Indigenous Aerospace and Past Success
Aligning with the Atmanirbhar Bharat vision, the scheme emphasizes boosting the indigenous aerospace sector. This includes the procurement of two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air, specifically for operations in challenging terrains where standard commercial fleets are limited. The Modified UDAN builds upon the foundation of the original UDAN Scheme, launched in October 2016, which has already operationalized 663 routes across 95 airports, heliports, and water aerodromes as of February 28, 2026. Over the past nine years, more than 3.41 lakh flights have operated under the scheme, carrying 162.47 lakh passengers, demonstrating its significant impact on regional connectivity.
This strategic move is part of the broader Viksit Bharat 2047 vision, aiming to position India as a globally competitive aviation hub while ensuring greater viability and sustainability for regional aerodromes and airline operators.
