On Wednesday, the Union Cabinet approved a revamped UDAN scheme with a total budget of ₹28,840 crore. This scheme establishes an ambitious plan to expand regional air connectivity over the next ten years. Read on to know more about the development.
Government Approves UDAN Scheme 2.0
As per a report by NDTV, the new UDAN 2.0 will be implemented from 2026-27 to 2035-36. The scheme aims to build around 100 airports by upgrading existing unserved airstrips. The total capital outlay of ₹12,159 crore over the next eight years supports the development. The scheme also plans to overcome last-mile connectivity issues, particularly in remote, hilly and island regions, including the development of 200 modern helipads at a cost of ₹15 crore each.
The total allocation for this development stands at ₹3,661 crore over eight years, with the aim of improving access to emergency services and healthcare in risky terrains. The government has also approved the procurement of indigenous aircraft to address the shortage of small aircraft needed for remote-area operations. This includes two HAL Dornier aircraft for Alliance Air and two HAL Dhruv helicopters for Pawan Hans.
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As per the news portal, to support route expansion and ensure commercial viability in less known markets, airlines operating on regional routes will continue to receive viability gap funding (VGF). For this, a total of ₹10,043 has been earmarked over the next 10 years.
More About The UDAN Scheme
Additionally, to ensure long-term sustainability, the development provides for maintenance and operation support for regional airports, which often result in high recurring costs and limited revenue. Financial assistance will also be extended for three years, capped at ₹3.06 crore annually per airport and ₹90 lakh per helipad and water aerodrome. The total estimate set aside for this is ₹2,577 crore, which will cover 441 aerodromes.
The original UDAN scheme was launched in 2016 and has operationalised 663 routes across 95 airports, heliports and water aerodromes as of February 2026. More than 3.41 lakh flights have operated under the program, carrying 1.62 crore passengers. The scheme has significantly improved connectivity and supported the growth of regional airlines across the country.
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What are your thoughts on this initiative? Let us know in the comments.
Cover Image Courtesy: Aman Uttam
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What is the UDAN scheme?
It's a regional airport development and connectivity program.