Modified UDAN Scheme: Strengthening India's Regional Aviation Network
The Indian government has launched the Modified UDAN Scheme, a comprehensive regional aviation connectivity program with a total outlay of ₹28,840 crore to be implemented over a 10-year period from FY 2026-27 to FY 2035-36. This scheme represents the next phase of the original UDAN (Ude Desh ka Aam Nagrik) program launched in October 2016, which has already operationalized 679 routes across 95 airports, heliports, and water aerodromes nationwide, serving over 1.68 crore passengers through more than 3.58 lakh flights.
Infrastructure Development Components
The Modified UDAN Scheme includes several targeted components with specific funding allocations. For aerodrome development, ₹12,159 crore has been allocated to develop 100 airports from existing unserved airstrips over the next eight years. For helicopter connectivity in geographically constrained areas, the scheme proposes developing 200 modern helipads at an estimated cost of ₹15 crore each, with a total projected outlay of ₹3,661 crore. The scheme also provides Operation and Maintenance (O&M) support worth ₹2,577 crore for approximately 441 aerodromes across the country, capped at ₹3.06 crore per annum per airport and ₹0.90 crore per annum per heliport or water aerodrome for three years.
Airline Support and Funding Mechanism
A significant component of ₹10,043 crore has been allocated for Viability Gap Funding (VGF) to support airline operators over ten years. Airlines will receive funding support for up to five years with a tapered funding mechanism beginning from the third year, while exclusivity on routes will remain limited to three years. The scheme incorporates a unique RCS levy mechanism that funds regional connectivity through a small fee on selected categories of domestic flights, similar to models used in other geographically large countries like the US, Canada, Brazil, and Australia.
Indigenous Aviation Development
Under the Atmanirbhar Bharat initiative, the scheme includes provisions for strengthening indigenous aviation capacity by proposing two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air, designed to operate effectively in challenging terrain conditions while supporting domestic manufacturing capability.
Operational Achievements and Impact
The existing UDAN scheme has significantly improved regional connectivity, particularly in remote, hilly, and island areas such as Tezpur, Passighat, Diu, Pithoragarh, and Rourkela. The scheme has reduced travel time dramatically between cities - for example, the Vijayawada to Kadapa route now takes approximately one hour by air compared to 8-10 hours by road. India's aviation infrastructure has expanded substantially, with operational airports increasing from 74 in 2014 to 165 as of 15th July 2026, positioning India as the third-largest domestic aviation market globally.