Cabinet Approves Modified UDAN Scheme with ₹28,840 Crore Outlay to Boost Regional Connectivity
New Delhi, March 25, 2026 – The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Regional Connectivity Scheme – Modified UDAN for a period of 10 years, with a total outlay of ₹28,840 crore.The revamped scheme will be implemented from FY 2026–27 to FY 2035–36, aiming to enhance regional air connectivity, especially in underserved and unserved areas, while boosting economic growth, trade, and tourismin tier 2 and tier 3 cities.
The initiative is also expected to provide affordable air travel, improve emergency response and healthcare accessin remote and hilly regions, and support the Atmanirbhar Bharat vision and Viksit Bharat 2047 goals.
Under the scheme, the government plans to develop 100 airports from existing unserved airstrips, with an estimated investment of ₹12,159 crore over the next eight years.
To ensure sustainability, the scheme includes operation and maintenance (O&M) support for regional airports facing high costs and limited revenues. This support will be provided for three years, capped at ₹3.06 crore per airport annually and ₹0.90 crore per heliport or water aerodrome, with a total estimated outlay of ₹2,577 crore for around 441 aerodromes.
Additionally, the government will develop 200 modern helipads in hilly, remote, and aspirational regions, at a cost of ₹3,661 crore, to improve last-mile connectivity and emergency services.
Airline operators will continue to receive Viability Gap Funding (VGF) for operating regional routes, with a proposed allocation of ₹10,043 crore over 10 years to support market development.
To address the shortage of aircraft, the scheme also includes the procurement of two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air.
Originally launched in October 2016, the UDAN scheme has significantly expanded India’s regional aviation network. As of February 28, 2026, a total of 663 routes have been operationalized across 95 airports, heliports, and water aerodromes, with over 3.41 lakh flights carrying 162.47 lakh passengers.
The modified scheme is expected to further strengthen India’s aviation infrastructure, improve connectivity to remote regions, and drive inclusive economic growth.
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