Cabinet clears Rs 28,840 cr modified UDAN scheme

Cabinet clears Rs 28,840 cr modified UDAN scheme

NEW DELHI [Maha Media]: The union Cabinet on Wednesday approved the launch of the revamped Regional Connectivity Scheme, UDAN Scheme, for a period of ten years from 2026-27 to 2035-36, with a total outlay of Rs 28,840 crore aimed at expanding affordable air travel and strengthening regional connectivity across the country.

Announcing the decision, Information and Broadcasting Minister Ashwini Vaishnaw said the modified scheme would deepen aviation access in underserved and unserved regions while supporting economic growth. "The scheme will significantly enhance regional air connectivity and make air travel more accessible for common citizens," he told reporters after the Cabinet meeting.

Officials said the revamped programme aligns with the government's long-term development roadmap under Viksit Bharat 2047 and aims to create a more inclusive and sustainable aviation ecosystem. The initiative is expected to boost trade, tourism and employment in Tier-2 and Tier-3 cities, while also improving emergency response and healthcare access in remote, hilly and island regions.

A key component of the scheme is the development of 100 new airports from existing unserved airstrips, with a capital expenditure of Rs 12,159 crore over the next eight years. The government also plans to support the operation and maintenance of around 441 regional aerodromes, including heliports and water aerodromes, by providing financial assistance to offset high recurring costs and limited revenue streams.

To address last-mile connectivity challenges, especially in difficult terrains, the scheme proposes the construction of 200 modern helipads at an estimated cost of Rs 3,661 crore. These are expected to play a crucial role in improving connectivity in aspirational districts and strengthening disaster response capabilities.

The Cabinet has also approved viability gap funding (VGF) of Rs 10,043 crore over ten years to support airline operators on regional routes, acknowledging that such routes often take longer to become commercially viable. "Providing sustained financial support is essential to ensure that airlines continue to operate in remote areas and develop these markets over time," an official said.

In a push to indigenous manufacturing under Atmanirbhar Bharat, the scheme includes the acquisition of aircraft built in India. This includes procurement of two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air to strengthen operations in challenging terrains.

The modified scheme builds on the success of the original UDAN programme launched in 2016, which sought to make air travel affordable and connect smaller cities to the national aviation network. Over the past nine years, 663 routes have been operationalised across 95 airports, heliports and water aerodromes. More than 3.41 lakh flights have been operated, carrying over 1.62 crore passengers.

Government officials noted that the earlier phase of the scheme helped improve connectivity in remote and underserved regions, contributing to tourism growth, better healthcare access and improved emergency services. It also encouraged the expansion of regional airlines and diversified fleet operations.

"The Modified UDAN Scheme is a natural progression of the earlier initiative and will further strengthen India's aviation landscape," Vaishnaw said. "It is designed to ensure affordability, sustainability and wider access, while positioning India as a globally competitive aviation hub."

The government expects the expanded scheme to deliver significant economic benefits by enhancing ease of travel, promoting regional development and generating employment opportunities across sectors such as aviation, hospitality and infrastructure. 
 

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