New Delhi : The Union Cabinet, chaired by Narendra Modi, on Wednesday approved the launch of the Regional Connectivity Scheme – Modified UDAN, to be implemented over a ten-year period from FY 2026–27 to FY 2035–36, with a total outlay of ₹28,840 crore.
The revamped scheme aims to enhance air connectivity to underserved and unserved regions while making air travel more affordable for the general public. Briefing the media, Union Minister Ashwini Vaishnaw said the initiative will support economic growth, trade, and tourism, particularly in Tier-II and Tier-III cities.
A key feature of the programme is the development of 100 airports from existing unserved airstrips, with ₹12,159 crore allocated for infrastructure expansion over the next eight years. The move is aligned with the government’s broader vision of building a globally competitive aviation ecosystem under the Viksit Bharat 2047 initiative.
To improve access in remote and difficult terrains, the scheme also includes the construction of 200 modern helipads, especially in hilly, island, and aspirational districts, at an estimated cost of ₹3,661 crore. Additionally, ₹2,577 crore has been earmarked to support operations and maintenance of around 441 regional aerodromes for three years, addressing their limited revenue streams and high operating costs.
The government has also proposed ₹10,043 crore in Viability Gap Funding (VGF) over the scheme’s duration to ensure the sustainability of regional air routes.
In a push for the domestic aerospace sector under the Atmanirbhar Bharat initiative, the government plans to procure two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air, aimed at improving connectivity in challenging regions.
The original UDAN scheme, launched in 2016, laid the foundation for regional air connectivity in India. As of February 28, 2026, a total of 663 routes have been operationalised across 95 airports, heliports, and water aerodromes, with over 3.41 lakh flights carrying 162.47 lakh passengers.
