India’s regional aviation landscape is set for a major transformation, with the Union Cabinet approving the Modified UDAN scheme, a ₹28,840 crore initiative aimed at significantly expanding air connectivity to underserved and remote regions.
A 10-Year Push to Expand Affordable Aviation
The 10-year programme, spanning FY 2026–27 to FY 2035–36, is expected to not only make air travel more accessible and affordable but also unlock economic growth across Tier-2 and Tier-3 cities by bringing them closer to mainstream markets and services.
The revamped regional connectivity scheme signals a major shift in policy, from simply adding routes to building a sustainable and inclusive aviation ecosystem.
Government Bets Big on Tier 2 & 3 Connectivity
By targeting smaller towns, hilly terrains, islands, and aspirational districts, the government is positioning aviation as a critical lever for social inclusion, faster mobility and balanced regional development.
Improved connectivity is expected to reduce travel time, enhance access to healthcare and emergency services, and create new opportunities for trade, tourism and local enterprise.
Development of 100 New Aerodromes
The scale of ambition is reflected in the scheme’s infrastructure push. Around 100 new aerodromes will be developed from currently unserved airstrips, strengthening last-mile connectivity and expanding the aviation map of the country.
Development of 200 Modern Helipads
At the same time, the plan to build 200 modern helipads in geographically challenging regions shows a targeted approach to areas where conventional airport infrastructure is not viable. These investments are aligned with the broader Viksit Bharat 2047 vision of creating world-class infrastructure and improving accessibility across regions.
Operation & Maintenance Support For Viability
Equally critical is the scheme’s focus on operational sustainability, a long-standing challenge in regional aviation. By providing operation and maintenance support to smaller aerodromes for up to three years, the government aims to ensure that newly-developed facilities remain functional and viable despite limited initial traffic.
Viability Gap Funding (VGF) for Airlines
This is complemented by continued viability gap funding for airlines, with a more structured five-year support window and a gradual tapering mechanism designed to encourage commercial sustainability over the time.
Boost To Indigenous Aviation
The Modified UDAN scheme also carries a strong Atmanirbhar Bharat thrust. By facilitating the procurement of indigenous aircraft such as HAL Dhruv helicopters and Dornier planes, the initiative seeks to strengthen domestic aviation capabilities while addressing the specific needs of operations in remote and difficult terrains. This dual focus on connectivity and indigenous capacity-building adds a strategic dimension to the programme.
The foundation for this next phase has already been laid. Since its launch, UDAN has operationalised 663 routes across 95 airports, heliports, and water aerodromes, carrying over 163 lakh passengers.
The scheme has played a key role in connecting remote regions, boosting tourism and supporting emergency services, while also nurturing a growing ecosystem of regional airlines.