Published: 26 March 2026PMIndia.gov.inEconomy
Cabinet Approves Modified UDAN Scheme with ₹28,840 Crore Outlay for 2026-2036
The Union Cabinet has approved the Regional Connectivity Scheme - Modified UDAN (Ude Desh Ka Aam Naagrik) for a period of ten years from FY 2026-27 to FY 2035-36 with a total outlay of ₹28,840 crore. The scheme aims to transform regional aviation connectivity across India.
Key components include: development of 100 airports from existing unserved airstrips with an outlay of ₹12,159 crore over eight years; construction of 200 modern helipads at ₹15 crore each totalling ₹3,661 crore; viability gap funding (VGF) support to airline operators of ₹10,043 crore over ten years; and operations and maintenance support of ₹2,577 crore for approximately 441 aerodromes.
The scheme also includes plans to procure two Dhruv helicopters for Pawan Hans and two Dornier aircraft for Alliance Air to address the shortage of small aircraft in remote and difficult terrains.
Over nine years of the original UDAN scheme, 663 routes have been operationalised across 95 airports, heliports, and water aerodromes, with more than 3.44 lakh flights carrying over 163 lakh passengers as on March 25, 2026.
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Q: Discuss the key components and impact of the Modified UDAN scheme approved with ₹28,840 crore outlay for transforming regional aviation connectivity.
Answer (50 words):
The Modified UDAN scheme spans 2026-2036 with ₹28,840 crore covering 100 airport upgrades from unserved airstrips, 200 helipads, viability gap funding for airlines, and maintenance of 441 aerodromes. The original UDAN operationalised 663 routes across 95 airports carrying over 163 lakh passengers by March 25, 2026, establishing the foundation this expansion builds upon.
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Frequently asked questions
What is the Modified UDAN Scheme approved by the Union Cabinet in 2026 and what is its total budget outlay?
The Union Cabinet approved the **Regional Connectivity Scheme - Modified UDAN** (Ude Desh Ka Aam Naagrik) for **ten years** from FY 2026-27 to FY 2035-36 with a total outlay of **₹28,840 crore**. The scheme aims to transform regional aviation connectivity across India by developing airports, helipads, and providing viability gap funding to airlines.
How many airports and helipads will be developed under the Modified UDAN Scheme 2026-2036?
The scheme plans to develop **100 airports** from existing unserved airstrips at a cost of **₹12,159 crore** over eight years, and construct **200 modern helipads** at **₹15 crore each**, totalling **₹3,661 crore**. Additionally, operations and maintenance support worth **₹2,577 crore** will cover approximately **441 aerodromes**.
What is the Viability Gap Funding (VGF) provided to airlines under the Modified UDAN Scheme 2026?
The Modified UDAN Scheme provides **Viability Gap Funding (VGF)** of **₹10,043 crore** to airline operators over **ten years** to make operations on regional routes financially viable. This mechanism bridges the revenue gap between actual earnings and the cost of operations on unserved or underserved routes.
Which aircraft are being procured under the Modified UDAN Scheme for remote and hilly terrain connectivity?
The scheme includes procurement of **two Dhruv helicopters** for **Pawan Hans** and **two Dornier aircraft** for **Alliance Air** to address the shortage of small aircraft in remote, hilly, and difficult terrains. These aircraft are essential for connecting areas not accessible by fixed-wing commercial jets.
What was the performance of the original UDAN scheme before the Modified UDAN 2026 was launched?
Over nine years, the original UDAN scheme operationalised **663 routes** across **95 airports, heliports, and water aerodromes**. As of **February 2026**, more than **3.41 lakh flights** had been operated, carrying **162.47 lakh passengers** under the scheme.
