New Delhi | March 25,2026 | SKY LINK TIMES
Cabinet Clears Rs 28840 Cr Modified UDAN Scheme:
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Modified Regional Connectivity Scheme (UDAN) with a total outlay of ₹28,840 crore. The scheme will be implemented over a 10-year period from FY 2026-27 to FY 2035-36, aiming to significantly enhance regional air connectivity across India.
Table of Contents
100 Airports to Be Developed
A key highlight of the revamped UDAN Scheme is the development of 100 airports from currently unserved or underutilised airstrips. This infrastructure push aligns with the government’s long-term vision of Viksit Bharat 2047, focusing on making India a globally competitive aviation hub.
The airport development component alone will involve an investment of ₹12,159 crore over the next eight years.
Focus on Remote and Aspirational Regions
To improve last-mile connectivity in difficult terrains, the scheme includes the development of 200 modern helipads, particularly in hilly, remote, island, and aspirational districts.
These helipads, estimated at ₹3,661 crore, are expected to strengthen emergency services, including disaster response and medical evacuation, while also improving connectivity in underserved regions.
Financial Support and Sustainability Measures
Recognising the financial challenges faced by regional airports, the government has proposed Operation & Maintenance (O&M) support for up to three years. This support will be capped at ₹3.06 crore annually per airport and ₹0.90 crore per heliport or water aerodrome.
Additionally, Viability Gap Funding (VGF) worth ₹10,043 crore over 10 years will be provided to airline operators to ensure the sustainability of regional routes and encourage participation.
Boost to Indigenous Aviation Sector
The scheme also aims to strengthen India’s domestic aviation ecosystem. Plans include the procurement of HAL Dhruv helicopters for Pawan Hans and HAL Dornier aircraft for Alliance Air, supporting the government’s Atmanirbhar Bharat initiative.
This move is expected to boost the indigenous aerospace manufacturing sector while addressing the shortage of small aircraft and helicopters.
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UDAN’s Journey So Far
Launched in 2016, the UDAN scheme has played a crucial role in democratizing air travel in India. Over the past nine years, it has operationalised 663 routes across 95 airports, heliports, and water aerodromes.
As of February 2026, more than 3.41 lakh flights have been operated under the scheme, benefiting over 1.62 crore passengers.
Economic Impact and Future Outlook
The modified UDAN scheme is expected to:
Boost regional economic growth and tourism
Enhance trade connectivity in tier 2 and 3 cities
Improve healthcare access in remote regions
Make air travel more affordable for common citizens
By strengthening aviation infrastructure and connectivity, the government aims to accelerate inclusive development and bridge regional disparities.
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