3 min readPuneUpdated: Mar 26, 2026 05:23 PM IST
Union Minister of State for Civil Aviation Murlidhar Mohol on Wednesday welcomed the Cabinet approval of the Regional Connectivity Scheme – Modified UDAN, calling it more than just an aviation expansion plan. “This scheme is not limited solely to facilitating travel; by boosting trade, tourism, employment, and healthcare services, it is set to provide a new direction to the nation’s holistic development,” said Mohol.
The Union Cabinet approved the scheme with a total outlay of Rs 28,840 crore, extending the programme for ten years from FY 2026-27 to FY 2035-36. Funded entirely by the Central Government, it aims to expand air connectivity to small cities and remote regions that remain underserved or completely unconnected by air.
The original UDAN scheme was launched in October 2016 to make air travel affordable and improve connectivity to Tier-2 and Tier-3 cities. Over nine years, operations commenced on 663 routes connecting 95 airports, heliports, and water aerodromes, with more than 3.41 lakh flights operated, carrying 162.47 lakh passengers. The modified scheme builds on this base and expands both its scale and scope across five key components.
100 new airports from existing airstrips
The largest chunk of funding, Rs 12,159 crore over eight years, is earmarked for converting 100 unserved airstrips into functional airports. These are locations that currently have a landing strip but lack the infrastructure, like terminals, security systems, navigation aids, and fuelling facilities needed for regular passenger operations.
Operations and maintenance support
Running regional airports is expensive, with limited revenue to offset costs. The scheme will provide operations and maintenance (O&M) support for three years to around 441 aerodromes, capped at Rs 3.06 crore per annum per airport and Rs 0.90 crore per annum per heliport or water aerodrome. Total estimated expenditure under this head is Rs 2,577 crore.
200 modern helipads
To address connectivity gaps in hilly, remote, island, and aspirational districts, the scheme proposes building 200 modern helipads at approximately Rs 15 crore each. The total outlay, inflation-adjusted over eight years, is Rs 3,661 crore. The helipads are intended to improve last-mile connectivity and emergency response in difficult terrain.
Viability Gap Funding for airlines
Airline operators assigned regional routes will receive Viability Gap Funding (VGF) – financial support to make otherwise commercially unviable routes operable. A total of Rs 10,043 crore in VGF has been proposed over the scheme’s ten-year period.
Story continues below this ad
Aircraft procurement under ‘Atmanirbhar Bharat’
To address the shortage of small aircraft suited for remote and difficult terrains, the scheme proposes procuring two Hindustan Aeronautics Limited (HAL) Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air.
