New Delhi, India — March 25, 2026 The Union Cabinet, led by Prime Minister Narendra Modi, has formally approved a restructured version of the UDAN (Ude Desh ka Aam Nagrik) regional connectivity scheme with a total budget of ₹28,840 crore. This revised initiative aims to improve aviation links for underserved and remote regions across India over the next decade (FY 2026‑27 to FY 2035‑36).
What the Modified UDAN Scheme Includes
- Major Network Expansion: The government plans to develop about 100 airports from currently unserved airstrips. These efforts are designed to broaden domestic air connectivity, especially for smaller towns and Tier‑2/Tier‑3 cities that historically lacked regular flights.
- Financial Support for Aerodromes: Smaller airports often struggle with high operational costs and limited revenue. To counter this, the scheme includes support for operation and maintenance (O&M) for selected regional airports and heliports for three years, helping them stay viable.
- Helipad Development for Remote Access: To boost last‑mile connectivity in hilly, island, or hard‑to‑reach areas, the government will set up around 200 modern helipads. This infrastructure will support emergency services, tourism, and critical access during crises.
- Viability Gap Funding (VGF) Support: Airlines operating on these regional routes will receive long‑term financial backing in the form of VGF, helping them maintain services where passenger numbers are initially low.
- Indigenous Aircraft Acquisition: Part of the scheme includes strengthening domestic aerospace capabilities by procuring aircraft such as HAL Dhruv helicopters and HAL Dornier planes for regional operations.
Why This Matters
- Enhanced Connectivity: The revised UDAN scheme aims to connect remote areas previously left out of mainstream aviation routes, thereby making air travel more affordable and accessible for millions of Indians. This extends the original mission of UDAN, which has progressively expanded since its launch in 2016.
- Economy & Tourism Boost: By integrating smaller cities into India’s aviation network, the initiative is expected to support economic growth, tourism, and regional business development. Increased air services will also assist in emergency medical access and disaster response.
- Infrastructure Growth: With a focus on infrastructure investment and sustainability, the Modified UDAN scheme supports India’s long‑term vision for a well‑connected and competitive aviation ecosystem by 2047.
Background: UDAN’s Legacy
The original UDAN scheme, launched in October 2016, was designed to democratize air travel by reducing fares and increasing the number of regional routes. Over the years, the programme has connected hundreds of routes and substantially expanded India’s domestic airport network.