Government Clears Modified UDAN Scheme To Expand Regional Air Connectivity, Develop 100 Airports
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New Delhi, April 13, 2026: The Union Cabinet has approved the modified Regional Connectivity Scheme (UDAN), aiming to make air travel more accessible, affordable, and inclusive across India while strengthening aviation infrastructure in underserved regions.
Under the revised scheme, the government plans to develop 100 new airports nationwide and 200 heliports in hilly states, Union Territories, island regions, the North Eastern Region, and aspirational districts. The initiative is expected to significantly improve connectivity in remote and geographically challenging areas.
A key feature of the scheme is the introduction of a “Challenge Mode” for aerodrome development, allowing states and Union Territories to nominate sites based on demand and readiness, thereby accelerating infrastructure expansion.
To ensure operational sustainability, the government will provide three years of Operations and Maintenance (O&M) support to selected aerodromes, addressing manpower and operational costs. Additionally, a state-supported framework will be implemented to ensure active participation and commitment from state governments.
The scheme also focuses on affordability by enabling lower airfares for more seats on larger aircraft, particularly benefiting passengers from Tier 2 and Tier 3 cities. In a move to support route viability, the Viability Gap Funding (VGF) period has been extended from three to five years.
Further, the initiative aligns with the Atmanirbhar Bharat vision by supporting aircraft acquisition and promoting the domestic aircraft manufacturing ecosystem.
Overall, the modified UDAN scheme is expected to enhance regional air connectivity, boost economic development in remote areas, and ensure balanced and sustainable growth of India’s aviation sector.
