New Delhi: Revamping the regional air connectivity initiative, the Union Cabinet on Wednesday cleared a modified UDAN scheme with an outlay of Rs 28,840 crore for ten years that will provide funds for developing airports, related operations and maintenance activities, helipads and support for the acquisition of India-made aircraft.
Airlines will be provided Viability Gap Funding (VGF) for operating UDAN routes, and the amount is estimated to be Rs 10,043 crore over the ten-year period starting from FY 2026-27.
Briefing media persons after the Cabinet meeting, Information and Broadcasting Minister Ashwini Vaishnaw said that under the modified scheme, 100 airports would be developed from existing unserved airstrips with the help of state governments, and the outlay in this regard would be Rs 12,159 crore over the next eight years.
The scheme aims to develop 200 modern helipads at Rs 15 crore each, amounting to a total requirement of Rs 3,661 crore over the next eight years (inflation-adjusted), an official release said.
The focus will be to develop helipads in priority and aspirational districts to improve last-mile connectivity and emergency response.
Towards Operation & Maintenance (O&M) works, the scheme will provide support for three years, capped at Rs 3.06 crore per annum per airport and Rs 0.90 crore per annum per heliport/water aerodrome. The total amount is estimated to be Rs 2,577 crore for around 441 aerodromes, the release said.
According to the government, the funding is being proposed, given the high recurring O&M costs and limited revenue streams for the Regional Connectivity Scheme (RCS)-only aerodromes.
“To address the shortage of small fixed-wing aircraft and helicopters required for operations in remote and difficult terrains and to advance the Atmanirbhar Bharat vision, the scheme also proposes to procure two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air,” the release said.
The modified UDAN (Ude Desh ka Aam Nagrik) scheme has been approved for the period from FY2026-27 to FY 2035-36 with a total outlay of Rs 28,840 crore, and there will be budgetary support from the central government.
The existing UDAN scheme ends later this year.
Since the launch of UDAN in October 2016, the government said 663 routes have been operationalised across 95 airports, heliports and water aerodromes. These figures are till February 28.
More than 3.41 lakh flights have been operated, carrying 162.47 lakh passengers under the scheme, which has fostered growth in regional airlines and diverse fleet operations, it added.
Civil Aviation Minister K Rammohan Naidu said airports are not merely the transit hubs but also the economic engines for the region with multiplier effect on employment and GDP across all connected sectors.
“With Modified UDAN, the path is laid for the Viksit Bharat 2047 and Viksit Aviation 2047 undoubtedly. Promoting Atma-Nirbhar Bharat, budgetary allocations have also been made for state-owned Pawan Hans Limited to procure 2 Made in India Dhruv helicopters and Alliance Air to procure 2 Made in India Hindustan 228 Aircraft,” he said in a post on X.
India is one of the world’s fastest-growing domestic civil aviation markets.
