With an aim to enhance regional air connectivity to underserved and unserved areas, the Union Cabinet has approved modified ‘Ude desh ka aam naagrik’ (UDAN) scheme, with a total outlay of Rs 28,840 crore. The new modified scheme will run for a period of ten years from FY 2026-27 to FY 2035-36. 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. 

Under this scheme, 100 airports are proposed to develop at 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. Further, the hilly, remote, island and aspirational regions will get 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.

The scheme will also provide operation & maintenance (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. Further, under the regional connectivity scheme, airline operators receive financial support in the form of Viability Gap Funding (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.