The Union Cabinet has approved the continuation of the Regional Connectivity Scheme (UDAN) for another ten years from FY2026-27 to FY2035-36, with a total outlay of ₹28,840 crore.
The decision builds on the UDAN scheme launched in 2016 to make air travel affordable and improve connectivity to Tier-2 and Tier-3 cities, with the modified version expanding the scope of regional connectivity and infrastructure support.
At the centre of the revised scheme is infrastructure expansion. The government plans to develop 100 airports from existing unserved airstrips, with a capital expenditure of ₹12,159 crore over eight years.
The scheme also addresses the challenge of viability of smaller airports. To address this, the scheme provides ₹2,577 crore for operations and maintenance support for around 441 aerodromes, with capped annual assistance of ₹3.06 crore per airport and ₹0.90 crore for heliports and water aerodromes.
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The scheme also sharpens its focus on last-mile connectivity. It proposes the development of 200 modern helipads, particularly in remote, hilly and island regions, at a cost of ₹3,661 crore, aimed at improving accessibility and emergency response capabilities.
To support airline participation, the government has allocated ₹10,043 crore as viability gap funding over the next decade, ensuring that regional routes remain operational while passenger demand develops.
In line with the Atmanirbhar Bharat initiative, the scheme also includes procurement of two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air, addressing the shortage of suitable aircraft for operations in difficult terrains.
The original UDAN scheme, launched in October 2016, has operationalised 663 routes across 95 airports, heliports and water aerodromes as of February 2026. Over this period, more than 3.41 lakh flights have carried 162.47 lakh passengers, expanding connectivity to remote and underserved regions.
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