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The Union Cabinet has approved a modified UDAN scheme with an outlay of INR 28,840 crore to expand regional air connectivity and strengthen aviation infrastructure in underserved and remote areas. The scheme aims to develop 100 airports, 200 helipads, and support airlines through enhanced viability gap funding and operational aid for smaller airports. Around 120 destinations are expected to benefit, enabling 4 crore additional passengers to travel. The programme also supports domestic aircraft acquisition and addresses gaps from the earlier UDAN framework that had operationalised over 600 routes and 95 aerodromes.
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved a revised version of the UDAN (Ude Desh Ka Aam Nagrik) scheme with a total outlay of INR 28,840 crore. Union Minister Ashwini Vaishnaw detailed the changes, highlighting enhanced financial support and a stronger focus on low-traffic and remote regions. The programme is designed to strengthen regional connectivity, expand aviation infrastructure, and make air travel more affordable in underserved areas. Advertisement
Under the modified scheme, the government plans to develop 100 new airports through a challenge-based process, with an average cost of INR 100 crore per airport. Budgetary support of INR 12,159 crore has been allocated for these airports, which will be built mainly at existing unserved airstrips with cooperation from state governments.
The scheme also proposes the construction of 200 modern helipads, especially in hilly areas, the North-East, island territories, and aspirational districts where conventional airports are difficult to establish. These helipads aim to improve last-mile connectivity and will receive INR 3,661 crore in funding. Additionally, INR 400 crore has been earmarked to support the acquisition of domestically manufactured aircraft.
Financial support for airlines has been enhanced through viability gap funding (VGF), with the Centre providing 80-90 per cent support to carriers on regional routes. This support will reduce gradually over five years and has a total allocation of INR 10,043 crore. Operational and maintenance (O&M) assistance is now included for smaller airports and helipads, addressing a key shortcoming of the previous UDAN scheme. Vaishnaw noted that limited commercial activity at small airports made it difficult for operators to cover operational costs, and O&M support, capped at INR 3 crore per airport and INR 90 lakh per helipad annually, will help sustain regional connectivity. A three-year support window has been approved with total budgetary allocation of INR 2,577 crore.
The modified UDAN scheme is expected to connect approximately 120 destinations and provide air travel access to around 4 crore additional passengers. It is anticipated to boost aviation infrastructure, improve emergency services including medical evacuation, support tourism, create jobs, and foster regional economic development.
Since its launch in 2016, the UDAN programme has operationalised 663 routes and 95 aerodromes, with ten airlines participating. Around 1.62 crore passengers have traveled under the scheme, completing over 3.41 lakh flights. The revised scheme builds on this foundation, providing stronger financial backing and more comprehensive infrastructure development to ensure long-term regional connectivity.
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