Ministry of Civil Aviation Launches Next Phase of UDAN Scheme with 21 State MoUs
The Ministry of Civil Aviation has taken a significant step toward strengthening regional air connectivity across India by signing 21 Memoranda of Understanding with States and Union Territories under the next phase of the UDAN (Ude Desh ka Aam Nagrik) Scheme. The ceremony was held at The Ashok in Chanakyapuri, New Delhi, and was inaugurated by Civil Aviation Minister Ram Mohan Naidu in the presence of Minister of State Murlidhar Mohol, Secretary Samir Kumar Sinha, AAI Chairman Vipin Kumar, and senior ministry officials.
The UDAN scheme has achieved substantial results since its launch, operationalizing 687 routes and 95 aerodromes with more than 3.66 lakh flights carrying approximately 1.71 crore passengers. The aviation sector has seen significant job growth, expanding from around 3 million jobs in 2014 to nearly 7.7 million today, with potential to reach 25 million by 2040. The scheme has connected previously remote airports like Tezu in Arunachal Pradesh and Purnea in Bihar, transforming them into drivers of regional prosperity.
The next phase of UDAN, building on the Prime Minister's inauguration at Jodhpur on July 4, 2026, and the UDAN Workshop held on July 16, 2026, rests on four pillars: affordability for passengers, sustainability of operations, transparent Challenge Mode framework for projects, and promotion of indigenous manufacturing toward the ambition of Made in India civil aircraft.
The Modified UDAN scheme targets 120 new destinations and 4 crore additional passengers over the next ten years. The 21 MoUs signed between the Ministry of Civil Aviation, participating States/UTs, and the Airports Authority of India establish a structured framework for coordinated action for identification, development, and operationalization of aviation assets aligned with state connectivity requirements.
Minister Ram Mohan Naidu launched the Challenge Mode Portal for Aerodrome Development and released the Scheme Document for the next phase of UDAN Route Bidding. Under Challenge Mode, State Governments and UT Administrations can now nominate airstrips and helipads for development through a dedicated portal, enabling proactive identification of locations with aviation connectivity potential. The upcoming route bidding round will invite airlines to bid for identified UDAN routes through a transparent and competitive selection process.
The event also featured a technical session on the next phase of UDAN, covering Challenge Mode for aerodrome development and the upcoming bidding round, providing an opportunity for States/UTs, AAI, airlines, and other stakeholders to deliberate on implementation framework.