India Approves Revised UDAN Scheme to Expand Regional Air Connectivity
India’s Union Cabinet has approved a revised version of the Regional Connectivity Scheme (RCS) – UDAN, allocating ₹28,840 crore in budgetary support to expand affordable air travel and strengthen regional aviation infrastructure. The programme will run from financial year 2026–27 to financial year 2035–36 and aims to improve connectivity to underserved and remote regions. According to a statement from the Ministry of Civil Aviation, the initiative will focus on developing airports, supporting airline operations and improving last‑mile transport access.
The revised scheme is designed to extend the benefits of aviation beyond major metropolitan centres to smaller cities, mountainous areas, island territories and aspirational districts. By improving regional air connectivity, policymakers expect to support economic activity, strengthen access to services and integrate local economies more closely with national markets.
Ten-Year Programme to Strengthen Regional Aviation
The updated UDAN framework introduces a long-term approach to developing regional aviation infrastructure and improving route viability. With funding support from the Government of India, the initiative combines infrastructure development with operational subsidies to help airlines serve smaller markets where demand is still emerging.
The programme builds on the earlier phases of UDAN, launched in 2016 to make air travel more accessible. As of 25 March 2026, the scheme has supported 663 operational routes across 95 airports, heliports and water aerodromes. More than 344,000 flights have operated under the programme, carrying over 16.3 million passengers and improving connectivity in remote and geographically challenging regions.
“Today the Cabinet’s approval of the revised UDAN scheme has further strengthened the commitment of Hon’ble Prime Minister Shri Narendra Modi Ji to make air travel more inclusive. UDAN was launched in 2016 with the vision of democratising air travel in the country, and the historic allocation of ₹28,840 crore demonstrates the government’s belief in developed UDAN as a pathway towards Viksit Bharat.” — Ram Mohan Naidu, Civil Aviation Minister, Government of India
Airport Development and Infrastructure Expansion
A central component of the revised scheme is the development of 100 airports from currently unused or underutilised airstrips. The government has allocated ₹12,159 crore over eight years to expand aviation infrastructure and strengthen the regional airport network.
Airport development under the programme will follow a challenge‑based approach aimed at improving delivery timelines, infrastructure quality and sustainability. This approach is intended to ensure that regional airports are completed efficiently while meeting operational standards required for reliable services.
Operational Support for Smaller Aerodromes
Recognising that smaller airports often face financial constraints in their early years, the scheme includes operational and maintenance support for up to three years. Funding will be capped at ₹3.06 crore annually per airport and ₹0.90 crore annually for each heliport or water aerodrome.
Approximately 441 aerodromes are expected to receive this support, with a total estimated expenditure of ₹2,577 crore. The measure is designed to ensure that newly developed facilities remain operational while passenger demand and commercial activity gradually increase.
Helipads to Improve Access in Remote Regions
To address connectivity challenges in mountainous, remote and island areas, the revised programme proposes the development of 200 modern helipads. These facilities will improve access where conventional airport infrastructure may not be feasible.
With an estimated cost of ₹15 crore per helipad, the government has earmarked approximately ₹3,661 crore for this component over eight years. Improved helicopter connectivity is expected to support healthcare access, emergency response services and government service delivery in remote locations.
Financial Support for Airlines Operating Regional Routes
The scheme continues to provide viability gap funding (VGF) to airlines operating regional routes. A total of ₹10,043 crore has been allocated for this purpose over the ten‑year period. Airlines will receive financial support for up to five years, with subsidies gradually reduced from the third year as routes develop commercial viability.
Operational exclusivity for airlines will be limited to three years, allowing competition once routes mature. The structure is intended to balance market development with long-term sustainability.
“Over the past nine years, the success of UDAN has shown that regional connectivity has the power to transform lives and open new opportunities. Through the revised UDAN scheme, we are building on this momentum with stronger infrastructure, enhanced viability support and greater focus on last‑mile connectivity.” — Murlidhar Mohol, Minister of State for Civil Aviation, Government of India
Supporting Domestic Aviation Capability
The revised scheme also incorporates elements aligned with the government’s Atmanirbhar Bharat policy to strengthen domestic manufacturing and aviation capability. Plans include the acquisition of two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air, both intended for operations in remote and difficult terrain.
Officials expect these measures to support India’s aerospace industry while improving the availability of aircraft suited to short regional routes.
Broader Economic and Connectivity Impact
Improved regional aviation links are expected to stimulate economic activity in smaller cities by supporting tourism, investment and local enterprise. The programme also complements wider national infrastructure efforts, including initiatives highlighted in India’s budget priorities for technology and infrastructure development.
Enhanced connectivity could also integrate aviation with broader digital and transport networks, alongside developments such as India’s expansion of 4G, 5G and satellite connectivity and technological modernisation across other transport systems, including initiatives where AI and digital technologies are transforming the rail travel experience.
By combining infrastructure investment, airline incentives and regional development goals, the revised UDAN programme aims to strengthen India’s aviation ecosystem while improving mobility for communities that have historically had limited access to air transport.
