The Centre has recently unveiled an ambitious expansion of its regional aviation programme with the launch of the Modified UDAN Scheme, committing ₹28,840 crore over the next decade to strengthen regional air connectivity, develop new airports and helipads, and make air travel more accessible across India.
The revamped scheme, which will be implemented from FY2026-27 to FY2035-36, aims to build on the success of the original UDAN (Ude Desh ka Aam Nagrik) programme launched in 2016, while addressing infrastructure gaps and improving the commercial viability of regional aviation.
Strong track record
Over the past nine years, the UDAN scheme has transformed regional connectivity by operationalising 679 routes across 95 airports, heliports and water aerodromes.
As of July 15, 2026, more than 3.58 lakh flights have carried over 1.68 crore passengers, significantly expanding affordable air travel beyond India’s major metropolitan cities.
The initiative has also contributed to the rapid expansion of India’s aviation network, with the number of operational airports increasing from 74 in 2014 to 165.
India is now the world’s third-largest domestic aviation market, reflecting strong growth in passenger demand and regional connectivity.
100 new airports planned
A key pillar of the Modified UDAN Scheme is the development of 100 airports by upgrading existing unserved airstrips, bringing more towns into the national aviation network.
The government has earmarked ₹12,159 crore over the next eight years for airport development, with the objective of improving passenger and cargo movement while boosting regional economic growth.
Support for smaller airports
Recognising that many regional airports require financial support during their initial years, the scheme includes ₹2,577 crore towards operation and maintenance (O&M) assistance.
The support will cover nearly 441 aerodromes, with eligible airports receiving up to ₹3.06 crore annually for three years, while heliports and water aerodromes can receive up to ₹90 lakh per year.
The initiative is expected to improve operational sustainability and ensure reliable air services in smaller markets.
200 modern helipads
To strengthen connectivity in geographically challenging regions, the government plans to build 200 modern helipads under the scheme.
With a projected investment of ₹3,661 crore, the helipads will improve access to remote areas, facilitate emergency medical services, disaster response and administrative connectivity, while supporting tourism and local economic activity.
Funding support for airlines
The Modified UDAN Scheme will continue providing Viability Gap Funding (VGF) to airline operators serving regional routes.
A total of ₹10,043 crore has been allocated for VGF over the next ten years. Airlines will receive financial support for up to five years, with funding gradually tapering from the third year as routes mature and become commercially viable.
Push for indigenous aviation
The scheme also aligns with the Atmanirbhar Bharat initiative by promoting indigenous aircraft deployment.
The government plans to induct two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air to improve connectivity in remote and difficult terrains while supporting domestic aerospace manufacturing.
Infrastructure expansion
The government’s regional aviation push is complemented by investments in airport infrastructure. The recently inaugurated New Terminal Building at Jodhpur Airport, spanning 23,342 square metres, can handle 1,500 peak-hour passengers and 20 lakh passengers annually. The terminal features modern baggage handling systems, advanced security screening, 20 check-in counters and six aerobridges.
With the Modified UDAN Scheme, the Centre aims to deepen regional connectivity, improve last-mile access and create a stronger aviation ecosystem that supports inclusive economic growth across the country.