Cabinet Approves Modified UDAN Scheme with ₹28,840 Cr Outlay

On 25th March 2026, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the revamped Regional Connectivity Scheme - Modified UDAN, with a total outlay of ₹28,840 crore for implementation from FY 2026-27 to FY 2035-36.

Key Points

Objective: Enhance regional air connectivity, make air travel affordable, and boost economic growth in Tier-2 and Tier-3 cities.
Airport Expansion:
- Development of 100 new airports from unserved airstrips.
- Capital outlay: ₹12,159 crore.
Sustainability Support:
- Operational & maintenance support for up to 3 years.
- ₹3.06 crore/year (airports) and ₹0.90 crore/year (heliports/water aerodromes).
- Total cost: ₹2,577 crore for ~441 facilities.
Helipad Development:
- 200 modern helipads to be built.
- Focus on remote, hilly, island, and aspirational regions.
- Outlay: ₹3,661 crore.
Viability Gap Funding (VGF):
- ₹10,043 crore allocated over 10 years.
- Supports airline operators on regional routes.
Push for Self-Reliance:
- Procurement of HAL Dhruv helicopters for Pawan Hans.
- Procurement of HAL Dornier 228 aircraft for Alliance Air.
UDAN Achievements (Since 2016):
- 663 routes operationalised.
- 95 airports/heliports/water aerodromes connected.
- 3.41 lakh flights operated.
- 162.47 lakh passengers served.
Broader Impact:
- Improves emergency response and healthcare access.
- Boosts tourism, trade, and regional economies.
- Strengthens domestic aerospace ecosystem under Atmanirbhar Bharat.