New Delhi: The Centre has cleared a proposal to significantly expand the UDAN regional air connectivity programme. The upgraded framework, involving an estimated outlay of Rs 30,000 crore, is now awaiting a final decision from the Union Cabinet after being examined by the Expenditure Finance Committee under the Ministry of Finance.
The revised plan aims to extend UDAN beyond April 2027 and address persistent gaps in regional aviation infrastructure. Officials familiar with the discussions indicated that the investment has been structured to support both airport development and continued viability gap funding. Of the total proposed outlay, Rs 18,000 crore is earmarked for building new airports across underserved regions, while Rs 12,000 crore has been set aside to subsidise airline operations on remote and commercially unviable routes.
UDAN, launched in 2016 to make regional air travel affordable and accessible, has achieved partial progress. Government data shows that over Rs 8,000 crore spent in earlier phases helped operationalise 649 out of 915 approved routes, connecting 92 unserved and underserved airports, along with several heliports and water aerodromes. However, many airports developed under the scheme have not yet become fully operational, often due to limited airline interest, infrastructure gaps, or recurring operational challenges.
The proposed expansion attempts to plug these shortcomings by improving incentives for airlines, encouraging private-sector participation, and strengthening last-mile aviation infrastructure. The move aligns with commitments made in the Union Budget 2025–26, where regional connectivity was identified as a priority for reducing travel disparities between major metros and smaller towns.
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