Centre Approves ₹28,840 Crore UDAN Expansion to Boost Regional Air Connectivity
The Union Cabinet has approved the next phase of the Regional Connectivity Scheme (UDAN – Ude Desh ka Aam Nagrik), with a total outlay of ₹28,840 crore over a 10-year period starting 2026-27. The revamped scheme aims to significantly enhance air connectivity in remote and underserved regions while strengthening India’s aviation ecosystem. Compared to the past decade’s expenditure of around ₹9,200 crore on viability gap funding (VGF) and airport development, the new allocation marks a substantial increase. The government expects the initiative to improve access to healthcare, emergency services, trade, and tourism, particularly in Tier-II and Tier-III cities.
A major focus of the modified UDAN scheme is infrastructure development, including the creation of 100 airports from unserved airstrips with a capital outlay of ₹12,159 crore over eight years. Additionally, 200 modern helipads will be built at a cost of ₹3,661 crore to improve last-mile connectivity in hilly, remote, and island regions. To address the financial challenges faced by regional airports, the government will provide operation and maintenance (O&M) support of up to ₹3.06 crore per airport annually, with a total allocation of ₹2,577 crore covering around 441 aerodromes. The scheme also proposes ₹10,043 crore in VGF support to ensure the viability of regional airline routes.
Launched in 2016, UDAN has so far awarded 925 routes, of which 663 have been operationalised, though 327 routes have been discontinued due to factors such as the pandemic, aircraft shortages, and low passenger demand. The updated scheme also includes plans to procure indigenously manufactured Dhruv helicopters and Dornier aircraft to improve connectivity in difficult terrains and support the Aatmanirbhar Bharat initiative. Despite operational challenges, the government remains optimistic that the enhanced UDAN framework will make air travel more affordable and accessible while driving economic growth across underserved regions of the country.
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