New Delhi: The Union Cabinet on Wednesday has approved the Regional Connectivity Scheme – Modified UDAN, with a total outlay of Rs 28,840 crore for a 10-year period from FY 2026–27 to FY 2035–36, aiming to strengthen air connectivity to remote and underserved regions of the country.
The scheme builds on the success of the original UDAN initiative launched in 2016, under which over 663 routes were operationalised across 95 airports, heliports, and water aerodromes. According to official data, more than 3.41 lakh flights have carried over 162.47 lakh passengers, significantly improving regional air access.
“The initiative will improve access to healthcare, boost tourism, and stimulate economic activity in Tier-2 and Tier-3 cities while contributing to the broader vision of Viksit Bharat 2047. Despite earlier challenges such as low passenger demand on certain routes, the government expressed confidence that enhanced infrastructure and financial support would make regional air connectivity more sustainable and inclusive.” Officials said.
Centre government plans to develop 100 new airports from existing unserved airstrips with an outlay of Rs 12,159 crore.
Additionally, 200 modern helipads will be constructed in remote, hilly, and aspirational districts at a cost of Rs 3,661 crore to enhance last-mile connectivity and emergency response services.
Therefore, the scheme will continue providing Viability Gap Funding (VGF) to airline operators, with an allocation of Rs 10,043 crore over the next decade. This is expected to help sustain operations in low-demand regions and keep fares affordable for passengers.
The government has also proposed operational and maintenance support for regional aerodromes, with an estimated Rs 2,577 crore earmarked for the purpose. The scheme will also support the acquisition of aircraft and helicopters, including HAL Dhruv helicopters and HAL Dornier aircraft, to boost regional aviation capacity and promote indigenous manufacturing under the Atmanirbhar Bharat initiative.
