The Ministry of Civil Aviation has signed Memoranda of Understanding (MoUs) with 22 states for the next phase of the Regional Connectivity Scheme (RCS-UDAN), paving the way for a new round of regional connectivity initiatives and the development of aviation infrastructure across the country.
The MoUs were signed on September 22 as part of the next phase of UDAN, which also includes the launch of a new Challenge Mode and Routes Bidding Round. The participating states are Andhra Pradesh, Bihar, Assam, Gujarat, Arunachal Pradesh, Chhattisgarh, Karnataka, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Punjab, Rajasthan, Sikkim, Tamil Nadu, Uttar Pradesh, Telangana, Tripura, Uttarakhand and West Bengal.
The next phase builds on the Modified UDAN scheme approved by the Union Cabinet in March 2026. The scheme will run for 10 years from FY2026-27 to FY2035-36 with a total budgetary outlay of ₹28,840 crore. A major component of the programme is the development of 100 airports from existing unserved airstrips. The government has earmarked ₹12,159 crore for this component over the next eight years, with the objective of extending regional air connectivity to more locations.
The Modified UDAN scheme also provides ₹2,577 crore for operation and maintenance support for around 441 aerodromes. The support is intended to address the high recurring costs and limited initial revenue streams associated with smaller regional airports and other RCS aerodromes.
Another major component is the development of 200 modern helipads in hilly, remote, island and aspirational regions. The programme has an estimated requirement of ₹3,661 crore for this component, while ₹10,043 crore has been allocated as viability gap funding for airline operators over the 10-year period.
The scheme also includes measures to strengthen indigenous aviation capacity. These include the proposed procurement of two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air to support operations in remote and difficult terrains.
The original UDAN scheme was launched in October 2016 to make air travel more affordable and improve connectivity to underserved and unserved regions. As of July 2026, the scheme had operationalised 679 routes connecting 95 airports, heliports and water aerodromes, carrying more than 1.68 crore passengers through over 3.58 lakh flights.
The new Challenge Mode and Routes Bidding Round are intended to expand the regional network further, while the airport development programme will bring existing unserved airstrips into the aviation infrastructure network. The next phase consequently combines new infrastructure creation with continued support for the operation and sustainability of regional air services.
