Government Approves Enhanced Regional Connectivity Scheme for 10 Years

The Indian Cabinet has approved the Modified UDAN Scheme, which aims to enhance regional air connectivity over the next decade with a budget of Rs 28,840 crore. This initiative is designed to improve access to underserved areas, boost tourism, and support affordable air travel for citizens. The scheme includes plans for developing 100 airports and constructing modern helipads in remote regions, ensuring better healthcare access and emergency response. With a focus on sustainability and the indigenous aerospace sector, the initiative aligns with the vision of 'Viksit Bharat 2047'.

By Narendra Chaudhary Mar 25, 2026, 17:00 IST

Cabinet Endorses Modified UDAN Scheme

New Delhi, March 25: The Cabinet, led by Prime Minister Narendra Modi, has given the green light to the Modified UDAN Scheme, aimed at improving regional connectivity for a decade with a total budget of Rs 28,840 crore, supported by the Central Government.

This initiative will be in effect from FY 2026-27 to FY 2035-36.

The implementation of this scheme is expected to significantly enhance air connectivity in underserved and unserved regions, stimulate economic development, promote tourism, and facilitate affordable air travel for the general public, while also improving healthcare access in remote and hilly areas.

Additionally, the scheme aims to ensure the viability and sustainability of regional airports and airlines, bolster the indigenous aerospace industry under the Atmanirbhar Bharat initiative, and contribute to the vision of 'Viksit Bharat 2047'.

The Modified UDAN Scheme plans to upgrade 100 airports from existing unserved airstrips, with an investment of Rs 12,159 crore over the next eight years, aligning with the infrastructure expansion goals of Viksit Bharat 2047 and transforming India into a competitive aviation hub.

To tackle the high operational and maintenance costs faced by Regional Connectivity Scheme (RCS)-only airports, the scheme includes provisions for operational and maintenance support for three years, capped at Rs 3.06 crore annually per airport and Rs 0.90 crore per year for heliports or water aerodromes, totaling an estimated Rs 2,577 crore for around 441 aerodromes.

Furthermore, to improve connectivity in hilly, remote, island, and aspirational regions, the scheme proposes the construction of 200 modern helipads at a cost of Rs 15 crore each, requiring a total of Rs 3,661 crore over the next eight years, focusing on priority districts to enhance last-mile connectivity and emergency services.

Under the Regional Connectivity Scheme, airline operators benefit from financial assistance in the form of Viability Gap Funding (VGF) for the routes they operate.

Recognizing the necessity for extended market development, the Cabinet has proposed VGF support for airline operators amounting to Rs 10,043 crore over the next decade.

To address the shortage of small fixed-wing aircraft and helicopters, the scheme also includes plans to acquire two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air.

The original UDAN Scheme was initiated in October 2016 with the goal of making air travel more affordable and enhancing connectivity to tier 2 and 3 cities.

Since its launch, 663 routes have been operationalized across 95 airports, heliports, and water aerodromes (as of February 28, 2026), with over 3.41 lakh flights conducted, transporting 162.47 lakh passengers.