Cabinet clears Rs 28,840 crore modified regional air connectivity scheme UDAN for 10 years

Information and Broadcasting Minister Ashwani Vaishnaw told reporters that the scheme will be operational between 2026-27 and 2035-36 and will have budgetary support from the government for the modified scheme.

New Delhi: With an aim of connecting 120 new destinations by air and benefitting four crore passengers, the Union Cabinet on Wednesday cleared a Rs 28,840 crore 'Regional Air Connectivity Scheme - Modified UDAN' for a period of ten years during which 100 new airports and 200 helipads are proposed to be built.

'UDAN' or 'Ude Desh ka Aam Nagrik' was launched in October 2016 to enhance regional air connectivity as well as make air travel more affordable and so far, 663 routes have been operationalised across 95 airports, heliports and water aerodromes and carried 1.62 crore passengers in 3.41 lakh flights.

Information and Broadcasting Minister Ashwini Vaishnaw told reporters that the scheme will be operational between 2026-27 and 2035-36 and will have budgetary support from the government for the modified scheme.

It will enhance regional air connectivity to underserved and unserved areas and boost economic growth, trade and tourism in Tier-2 and Tier-3 cities, Vaishnaw said after the Cabinet meeting.

He also said the scheme will also promote indigenous aerospace sector under 'Atmanirbhar Bharat' and improve emergency response and healthcare access in remote and hilly regions.

Under the Modified UDAN Scheme, the proposal is to develop 100 airports from existing unserved airstrips to enhance regional connectivity over the next eight years at a cost of Rs 12,159 crore.

Vaishnaw said this is in line with the Viksit Bharat 2047 vision of infrastructure expansion and transforming India into a globally competitive aviation ecosystem.

To address connectivity challenges in hilly, remote, island and aspirational regions, the scheme also proposes developing 200 modern helipads at Rs 15 crore each, amounting to a total requirement of Rs 3,661 crore over the next eight years (inflation-adjusted), focused on priority and aspirational districts to improve last-mile connectivity and emergency response.

For Viability Gap Funding (VGF) support to airlines, the government has earmarked Rs 10,043 crore over ten years "recognising the need for longer market development".

Given the high recurring operation and maintenance (O&M) costs and limited revenue streams for Regional Connectivity Scheme (RCS)-only aerodromes, another proposal is to provide O&M support for three years capped at Rs 3.06 crore per annum per airport and Rs 90 lakh per annum per heliport/water aerodrome, estimated at Rs 2,577 crore for 441 aerodromes.

In an attempt to address the shortage of small fixed-wing aircraft and helicopters required for operations in remote and difficult terrains and to advance the Atmanirbhar Bharat vision, the scheme also proposes to procure two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air.