New Delhi, March 25
The Union Cabinet on Wednesday approved a modified version of the UDAN regional air connectivity scheme, with a total outlay of Rs 28,840 crore over 10 years to expand aviation infrastructure and improve access to remote areas.
The revised scheme will run from the 2026-27 financial year to 2035-36 and will replace the existing UDAN programme, which is due to end later this year.
Under the new plan, the government will provide funding for the development of airports, helipads, operational and maintenance support, and the acquisition of India-made aircraft and helicopters for regional connectivity.
Information and Broadcasting Minister Ashwini Vaishnaw said the scheme would help develop 100 airports from existing unserved airstrips in partnership with state governments.
The outlay for airport development has been set at Rs 12,159 crore over the next eight years.
The government also plans to build 200 modern helipads, with a total estimated cost of Rs 3,661 crore. Officials said the focus would be on priority and aspirational districts to improve last-mile connectivity and strengthen emergency response.
Airlines operating UDAN routes will continue to receive Viability Gap Funding (VGF), with the government estimating support of Rs 10,043 crore over the 10-year period starting from 2026-27.
The scheme also includes financial support for operation and maintenance costs for three years at regional airports, heliports and water aerodromes.
This support will be capped at Rs 3.06 crore per year for each airport and Rs 0.90 crore per year for each heliport or water aerodrome, with a total projected cost of Rs 2,577 crore for around 441 aerodromes.
The government said such assistance was necessary because many Regional Connectivity Scheme-only aerodromes face high recurring costs and have limited revenue streams.
To address a shortage of small aircraft and helicopters for operations in difficult and remote terrain, the scheme also includes plans to procure two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air.
Officials said the move was intended to support domestic manufacturing under the government’s Atmanirbhar Bharat initiative while improving connectivity in challenging regions.
Since its launch in October 2016, UDAN has become the flagship programme for expanding regional aviation in India.
According to government figures, 663 routes had been operationalised across 95 airports, heliports and water aerodromes by 28 February this year.
More than 3.41 lakh flights have been operated under the scheme, carrying 162.47 lakh passengers, the government said.
India remains one of the world’s fastest-growing domestic aviation markets, and the revamped scheme is expected to play a central role in expanding access to air travel beyond major cities.
