New Delhi: The Modified UDAN Scheme is set to enter its next phase on June 20, with Prime Minister Narendra Modi expected to unveil the revamped regional aviation programme in Kolkata.
Backed by a massive ₹28,840 crore budget, the scheme aims to strengthen air connectivity in underserved and remote regions by developing 100 new airports, expanding heliport infrastructure, and improving the long-term sustainability of regional air routes. The initiative is expected to play a major role in India’s aviation growth strategy over the next decade.
What is the Modified UDAN Scheme?
The UDAN (Ude Desh ka Aam Nagrik) programme was launched to make air travel affordable and accessible for people living in smaller cities and remote regions.
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Under the modified version:
- The scheme will run from FY 2026-27 to FY 2035-36.
- Total outlay is ₹28,840 crore.
- Focus will shift from only route creation to long-term infrastructure development.
- Greater emphasis will be placed on operational sustainability and regional growth.
Key Highlights of the Modified UDAN Scheme
1. Development of 100 New Airports
The government plans to:
- Develop 100 airports from existing unserved airstrips.
- Improve connectivity in Tier-2 and Tier-3 cities.
- Support India’s long-term aviation infrastructure goals under the Viksit Bharat vision.
2. Connectivity to 120 New Destinations
The scheme aims to:
- Connect 120 additional destinations.
- Facilitate air travel for nearly four crore passengers over the next decade.
- Bring remote regions into the national aviation network.
3. Expansion of Helipad Infrastructure
The modified framework includes:
- Development of 200 modern helipads.
- Special focus on hilly states, islands, Northeast India and aspirational districts.
- Better emergency response and last-mile connectivity.
4. Support for Regional Aerodromes
The programme proposes:
- Operations and maintenance support for hundreds of regional aerodromes.
- Improved infrastructure sustainability.
- Reduced financial burden on smaller airports.
5. Extended Viability Gap Funding (VGF)
To help airlines operate regional routes:
- VGF support may be extended from 3 years to 5 years.
- Airlines will receive longer financial support while building passenger demand.
- Affordable airfares can be maintained for a longer period.
Why the Government Modified the Scheme
The earlier phases of UDAN successfully expanded regional connectivity but also faced challenges:
- Limited airport readiness.
- Infrastructure bottlenecks.
- Route sustainability concerns.
- Operational challenges for regional airlines.
The modified framework seeks to address these issues by focusing on infrastructure, state participation, and longer-term financial support.
Economic Impact Analysis
Boost to Regional Economies
Improved air connectivity can:
- Increase tourism.
- Attract investments.
- Improve business travel.
- Create local employment opportunities.
Small cities connected through airports often witness growth in hospitality, logistics, trade, and real estate sectors.
Faster Development of Aspirational Districts
The scheme specifically targets:
- Remote regions.
- Hilly areas.
- Islands.
- Northeast India.
This can reduce travel time and improve access to healthcare, education, and government services.
Growth in Domestic Aviation Manufacturing
The increased scale of regional aviation is expected to create demand for smaller aircraft and support India’s domestic aerospace manufacturing ecosystem under the Atmanirbhar Bharat initiative.
