New Delhi — The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the modified UDAN (Ude Desh ka Aam Nagrik) for a period of 10 years with a total outlay of Rs 28,840 crore. The revamped scheme will run from FY 2026-27 to FY 2035-36 with budgetary support from the Central government.
The updated initiative aims to strengthen regional air connectivity in underserved and unserved areas, boost trade and tourism in Tier-2 and Tier-3 cities, and make air travel more affordable for common citizens. It is also expected to improve emergency response and healthcare access in remote and hilly regions.
Under the modified scheme, 100 airports will be developed from existing unserved airstrips to enhance connectivity, aligned with the government’s Viksit Bharat 2047 infrastructure expansion goals. This component will involve an outlay of Rs 12,159 crore over the next eight years.
To support regional aerodromes facing high operational costs and limited revenue, the government will provide operation and maintenance assistance for three years. The support is capped at Rs 3.06 crore annually per airport and Rs 0.90 crore for heliports and water aerodromes, with an estimated allocation of Rs 2,577 crore covering around 441 facilities.
The scheme also proposes development of 200 modern helipads in hilly, remote, island and aspirational regions at a cost of Rs 15 crore each, requiring Rs 3,661 crore over eight years. This is aimed at improving last-mile connectivity and strengthening emergency services.
Airline operators will continue to receive financial support through viability gap funding, with Rs 10,043 crore earmarked over 10 years to encourage operations on regional routes.
To address the shortage of smaller aircraft, the plan includes procurement of two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier 228 aircraft for Alliance Air.
The original UDAN scheme, launched in October 2016, aimed to make air travel affordable while improving connectivity to smaller cities. Over nine years, 663 routes have been operationalised across 95 airports, heliports and water aerodromes, with more than 3.41 lakh flights carrying over 1.62 crore passengers.
With inputs from IANS