Cabinet approves revised UDAN scheme with ₹28,840 crore outlay to boost regional air connectivity.

The Union Cabinet, chaired by Narendra Modi, has approved a revamped version of the UDAN (Ude Desh ka Aam Nagrik) scheme with a total outlay of ₹28,840 crore, aimed at strengthening regional air connectivity and expanding aviation infrastructure in underserved areas.

Union Minister Ashwini Vaishnaw outlined key changes during a Cabinet briefing, highlighting enhanced financial support and a sharper focus on remote and low-traffic regions.

Infrastructure expansion

Under the revised scheme, the government plans to develop 100 new airports using a challenge-based approach, with an average cost of ₹100 crore per airport and ₹12,159 crore allocated for this component. Additionally, 200 modern helipads will be built, particularly in hilly regions, the North-East, island territories, and aspirational districts where conventional airports are difficult to construct. Helicopter services are expected to improve last-mile connectivity in such areas, with ₹3,661 crore earmarked for the initiative.

The scheme also supports the acquisition of domestically manufactured aircraft, with ₹400 crore allocated for this purpose.

Financial support for airlines and operations

The modified UDAN introduces enhanced viability gap funding (VGF), providing 80–90% support to airlines operating on regional routes. This support will taper over five years, with a total allocation of ₹10,043 crore. A new operational and maintenance (O&M) component has been included to help smaller airports and helipads sustain themselves despite limited commercial activity, with ₹2,577 crore earmarked for a three-year O&M window. Each RCS (Regional Connectivity Scheme) airport will receive up to ₹3 crore annually, while helipads will get ₹90 lakh per year.

“Small airports have limited commercial activity, which makes it difficult to generate sufficient revenue to meet operational and maintenance costs. This is why O&M support has now been incorporated into the scheme,” Vaishnaw said, adding that the move would help sustain regional connectivity and “democratise transportation in India.”

Connectivity and economic impact

The government expects the revised scheme to connect 120 new destinations and enable air travel for around 4 crore additional passengers. Expansion is projected to boost aviation infrastructure in remote and hilly areas, support tourism, create jobs, promote regional economic development, and improve access to emergency services including disaster response and medical evacuation.

Since its launch, the UDAN scheme has operationalised 663 routes and 95 aerodromes, with 10 airline operators participating. Approximately 1.62 crore passengers have travelled under the scheme, with over 3.41 lakh flights completed, reflecting steady growth in regional air connectivity across the country.