Published: 26 March 2026PIB / Business StandardEconomy
Union Cabinet Approves Modified UDAN Scheme with ₹28,840 Crore Outlay to Connect 120 New Destinations
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Regional Connectivity Scheme – Modified UDAN (Ude Desh ka Aam Naagrik) on March 25, 2026, with a total financial outlay of ₹28,840 crore for the period 2026–2036. The scheme is designed to make air travel affordable and accessible while transforming India into a globally competitive aviation ecosystem aligned with Viksit Bharat 2047.
The modified scheme is expected to connect 120 new destinations and cater to nearly 40 million passengers. Of the total outlay, ₹12,159 crore is allocated for developing 100 airports from existing unserved airstrips over eight years, and ₹10,043 crore is earmarked as Viability Gap Funding (VGF) support to airline operators over ten years. The remaining allocation supports digital integration and operational enhancements.
Since its launch in 2016, UDAN has improved connectivity to tier-2 and tier-3 cities significantly. Rajasthan stands to benefit from the scheme as airports in Bikaner, Jaisalmer, Kota, Jhalawar, and Chittorgarh are expected to see enhanced connectivity, boosting regional tourism and trade. The scheme supports the Ministry of Civil Aviation's target of 350 operational airports by 2030.
0Mains angle
Q: Evaluate the Modified UDAN scheme's role in enhancing regional air connectivity and advancing Viksit Bharat 2047 aviation goals.
Answer (50 words):
The Union Cabinet on March 25, 2026 approved the Modified UDAN scheme with a ₹28,840 crore outlay for 2026–2036, targeting 120 new destinations, 100 new airports and 40 million passengers. ₹12,159 crore funds airport development, ₹10,043 crore is earmarked as Viability Gap Funding for operators.
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Linked questionMedium
How many new destinations is the Modified UDAN Scheme expected to connect?
Explanation · Correct answer AThe Modified UDAN Scheme is expected to connect 120 new destinations and cater to nearly 40 million passengers over its 2026-2036 duration.
Frequently asked questions
What is the UDAN scheme and when was it originally launched?
UDAN (Ude Desh ka Aam Naagrik) was originally launched in 2016 under the National Civil Aviation Policy with the aim of making air travel affordable and accessible to common citizens of India. It focuses on connecting underserved Tier-2 and Tier-3 cities through subsidised airfares.
What are the key targets of the Modified UDAN scheme approved in 2026?
The Modified UDAN scheme, approved on March 25, 2026, targets connecting 120 new destinations, developing 100 new airports, heliports, and airstrips, and carrying 40 million passengers over the next ten years. It has a total outlay of ₹28,840 crore for the 2026–2036 period.
Which agency is responsible for implementing the UDAN scheme?
The Ministry of Civil Aviation administers the UDAN scheme, while the Airports Authority of India (AAI) is the nodal implementing agency. Vipin Kumar chairs the AAI.
How does the Modified UDAN scheme align with Viksit Bharat 2047?
The Modified UDAN scheme aligns with Viksit Bharat 2047's goal of equitable infrastructure development by improving aviation connectivity in Tier-2, Tier-3 cities and remote, hilly, and island regions. It aims to democratise air travel across India before 2047.
What is the financial outlay for the Modified UDAN scheme and for what period?
The Union Cabinet approved a financial outlay of ₹28,840 crore for the Modified UDAN scheme covering the period 2026 to 2036. This ten-year investment reflects the government's long-term commitment to expanding India's aviation infrastructure.
