The Union Cabinet, chaired by Narendra Modi, has approved the Regional Connectivity Scheme–Modified UDAN for a 10-year period from FY 2026–27 to FY 2035–36, with a total outlay of Rs 28,840 crore, backed by budgetary support from the Central Government.
The decision aims to expand regional air connectivity across underserved and unserved areas, with a focus on improving access to tier 2 and tier 3 cities. The government said the scheme is expected to stimulate economic growth, enhance trade and tourism, and make air travel more affordable for the general public. It also seeks to strengthen emergency response systems and healthcare access in remote and hilly regions.
Under the revised framework, the government plans to develop 100 airports by reviving existing unserved airstrips. This component carries an allocation of Rs 12,159 crore over the next eight years and aligns with the broader vision of infrastructure expansion under the ‘Viksit Bharat 2047’ roadmap. The move is intended to create a more competitive aviation ecosystem while improving regional accessibility.
To address operational challenges faced by smaller airports, the scheme includes financial support for operations and maintenance. Airports under the Regional Connectivity Scheme will receive support for up to three years, capped at Rs 3.06 crore annually per airport and Rs 0.90 crore per heliport or water aerodrome. The total estimated outlay for this component stands at Rs 2,577 crore, covering around 441 aerodromes.
The Cabinet has also approved the development of 200 modern helipads to strengthen last-mile connectivity, particularly in hilly, remote, island, and aspirational districts. Each helipad is estimated to cost Rs 15 crore, with a total projected expenditure of Rs 3,661 crore over eight years, adjusted for inflation. The initiative is aimed at improving connectivity and enabling faster emergency response in difficult terrains.
Airline operators under the scheme will continue to receive Viability Gap Funding (VGF) to sustain operations on regional routes. Recognising the longer gestation period required for such routes to become commercially viable, the government has proposed Rs 10,043 crore in VGF support over the 10-year period.
To address the shortage of small aircraft and helicopters, the scheme also includes plans to procure two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air.
The original UDAN scheme, launched in October 2016, sought to make air travel affordable and improve connectivity to smaller cities. As of February 28, 2026, a total of 663 routes have been operationalised, connecting 95 airports, heliports, and water aerodromes. Over 3.41 lakh flights have been conducted under the scheme, carrying 162.47 lakh passengers.
