Cabinet Approves ₹28,840 Crore Modified UDAN Scheme to Develop 100 Airports

UDAN scheme airport development project in India to build 100 airports and improve regional air connectivity
Government approves ₹28,840 crore UDAN scheme to expand regional aviation infrastructure across India.

The Union Cabinet has approved a revamped version of the UDAN (Ude Desh ka Aam Nagrik) scheme with a total outlay of ₹28,840 crore, aimed at significantly expanding regional air connectivity across India.

Under the modified scheme, the government plans to develop 100 new airports by upgrading existing airstrips, particularly in underserved and remote regions, to improve access and connectivity.

The initiative will be implemented over a 10-year period (FY27–FY36) and is designed to strengthen the aviation network in Tier-2 and Tier-3 cities, while making air travel more accessible and affordable for the common population.

In addition to airports, the plan also includes the development of around 200 modern helipads, aimed at improving connectivity in hilly, island, and North-Eastern regions where conventional infrastructure is limited.

To support airline participation, the government will provide viability gap funding (VGF) covering a significant portion of operational costs on regional routes, ensuring the financial sustainability of services in low-demand sectors.

The scheme also provides operations and maintenance (O&M) support for regional airports and helipads, with defined financial assistance to ensure long-term functionality and service quality.

Originally launched in 2016, the UDAN scheme has already operationalised over 600 routes across nearly 100 airports, heliports, and water aerodromes, playing a key role in expanding India’s regional aviation footprint. The modified scheme is expected to boost tourism, trade, and regional economic development, while also improving emergency response and healthcare access in remote areas.

Overall, the ₹28,840 crore programme marks a major step toward deepening last-mile air connectivity and strengthening India’s aviation infrastructure ecosystem.

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