New Delhi: The Union Cabinet, under the leadership of Prime Minister Shri Narendra Modi, has sanctioned the launch and implementation of the Modified UDAN Regional Connectivity Scheme.
This initiative is scheduled to run for a decade, spanning from the 2026-27 fiscal year through 2035-36, supported by a total government outlay of 28,840 crore rupees.
The program aims to significantly enhance air travel access to underserved regions, fostering economic growth and tourism in smaller cities while making flights more affordable for the general public.
Additionally, the scheme is designed to improve emergency healthcare access in remote areas and support the domestic aerospace sector in line with the goal of a developed India by 2047.
Key financial allocations within the scheme include 12,159 crore rupees dedicated to the development of 100 new airports from existing unserved airstrips over the next eight years.
To ensure these sites remain functional despite high recurring costs, 2,577 crore rupees has been set aside to support the operation and maintenance of approximately 441 aerodromes.
Furthermore, the plan includes a 3,661 crore rupee investment to construct 200 modern helipads, specifically targeting hilly and island regions to improve last-mile connectivity.
To maintain the commercial viability of these routes, the government has allocated 10,043 crore rupees for Viability Gap Funding to assist airline operators over the ten-year period.
In a move to bolster domestic manufacturing under the Atmanirbhar Bharat vision, the scheme also facilitates the procurement of two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air.
This follows the success of the original UDAN mission launched in 2016, which has already operationalized over 660 routes and served more than 162 lakh passengers across the country as of early 2026.