**Executive Summary**
The Union Cabinet has approved the "Modified UDAN" Regional Connectivity Scheme for a ten-year period from FY 2026-27 to FY 2035-36, with a total outlay of Rs.28,840 crore. The scheme aims to enhance air connectivity to underserved areas, boost economic growth in Tier-2 and Tier-3 cities, and improve emergency response in remote regions. Key implementation targets include the development of 100 airports and 200 modern helipads over the next eight to ten years.
**Key Points / Main Content**
**Infrastructure and Aerodrome Development (CAPEX)**
* **Airport Expansion:** Development of 100 airports from existing unserved airstrips with a total outlay of Rs.12,159 crore over the next eight years.
* **Helipad Network:** Construction of 200 modern helipads at a cost of Rs.15 crore each (total Rs.3,661 crore) to address connectivity in hilly, remote, and island regions.
**Operational and Financial Support**
* **O&M Support:** Provision of Rs.2,577 crore for the operation and maintenance (O&M) of approximately 441 aerodromes; support is capped at Rs.3.06 crore per airport and Rs.0.90 crore per heliport/water aerodrome per annum for three years.
* **Viability Gap Funding (VGF):** Allocation of Rs.10,043 crore over 10 years to provide financial support to airline operators for operating awarded regional routes.
**Strategic Aircraft Acquisition**
* **Fleet Expansion:** Procurement of two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air.
* **Indigenous Promotion:** Emphasis on the "Atmanirbhar Bharat" vision by utilizing indigenous aerospace technology for operations in difficult terrains.
**Impact Analysis**
**Common Citizens and Residents of Tier-2/3 Cities**
**Impact**
Increased access to affordable air travel, improved regional tourism, and faster emergency healthcare access in remote and hilly areas.
**Action Required**
None specified; stakeholders will benefit from the operationalization of new routes and infrastructure.
**Regional Airline Operators**
**Impact**
Enhanced financial viability and sustainability through Rs.10,043 crore in Viability Gap Funding (VGF) for market development.
**Action Required**
Operators must maintain operations on awarded routes to receive financial support.
**Aerodrome and Heliport Operators**
**Impact**
Receipt of budgetary support for O&M costs for three years to offset limited revenue streams at RCS-only facilities.
**Action Required**
Ensure the maintenance and operational readiness of the 441 aerodromes and newly developed sites.
**Pawan Hans and Alliance Air**
**Impact**
Strengthening of fleet capabilities through the acquisition of four new indigenous aircraft/helicopters.
**Action Required**
Deploy the new HAL-manufactured assets for operations in remote and difficult terrains.
Key Entities Referenced
Regional Connectivity Scheme – Modified UDAN: A 10-year initiative (FY 2026-27 to 2035-36) with an outlay of Rs. 28,840 crore designed to enhance air connectivity to underserved areas and develop aviation infrastructure.
UDAN Scheme: The original regional connectivity program launched in 2016 that established the framework for making air travel affordable and connecting Tier-2 and Tier-3 cities.
Atmanirbhar Bharat: A national initiative for self-reliance that drives the scheme's components for indigenous aerospace promotion and domestic aircraft and helicopter acquisition.
Viksit Bharat 2047: The strategic vision for a developed India that guides the infrastructure expansion goals, including the development of 100 airports under the scheme.
Cabinet
Cabinet approves Regional Connectivity Scheme
– Modified UDAN with a total outlay of Rs.28,840
crore
Posted On: 25 MAR 2026 4:16PM by PIB Delhi
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the launch and
implementation of the Regional Connectivity Scheme – Modified UDAN for a period of ten years from
FY 2026-27 to FY 2035-36 with a total outlay of Rs.28,840 crore with the budgetary support of the
Government of India.
Impact:
Enhanced regional air connectivity to underserved and unserved areas.
Boost to economic growth, trade and tourism in Tier-2 and Tier-3 cities.
Support affordable air travel for common citizens.
Improved emergency response and healthcare access in remote and hilly regions.
Greater viability and sustainability for regional aerodromes and airline operators.
Promotion of the indigenous aerospace sector under Atmanirbhar Bharat.
Progress towards Viksit Bharat 2047 goal.
The key components of the scheme are as under:
(a) Development of Aerodromes (CAPEX)
Under the Modified UDAN Scheme, it is proposed to develop 100 airports from existing unserved
airstrips to enhance regional connectivity, in line with the Viksit Bharat 2047 vision of infrastructure
expansion and transforming India into a globally competitive aviation ecosystem with a total outlay of
Rs.12,159 crore over the next eight years.
(b) Operation & Maintenance (O&M) of Aerodromes
Given the high recurring O&M costs and limited revenue streams for Regional Connectivity Scheme
(RCS)-only aerodromes, the Scheme proposes to provide O&M 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, estimated at
Rs.2,577 crore for around 441 aerodromes.
(c) Development of Modern Helipads
To address connectivity challenges in hilly, remote, island and aspirational regions, the Scheme proposes
developing 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), focused on priority and aspirational districts to improve last-
mile connectivity and emergency response.
(d) Viability Gap Funding (VGF)Under the Regional Connectivity Scheme, airline operators receive financial support in the form of VGF
for operating awarded routes. Recognising the need for longer market development, VGF support to
airline operators is proposed amounting to Rs.10,043 crore over 10 years.
(e) Atmanirbhar Bharat Aircraft Acquisition
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.
Background:
The original UDAN Scheme was launched in October 2016 with the objective of making air travel
affordable and strengthening connectivity to Tier-2 and Tier-3 cities. Over nine years of implementation:
663 routes have been operationalised across 95 airports, heliports and water aerodromes (as on 28
February 2026).
More than 3.41 lakh flights have been operated, carrying 162.47 lakh passengers.
Connectivity has been established in remote, hilly and island regions, boosting tourism, healthcare access
and emergency services.
The scheme has fostered growth in regional airlines and diverse fleet operations, laying a strong
foundation for the Modified UDAN Scheme.
***
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