Wings for Remote India: Inside the ₹28,840 Crore UDAN Makeover

The Union Cabinet, led by Prime Minister Narendra Modi, has approved a revamped version of the UDAN Scheme with a total outlay of ₹28,840 crore, aimed at strengthening regional air connectivity and expanding aviation infrastructure in underserved regions.

Union Minister Ashwini Vaishnaw highlighted the key changes, noting increased financial support and a stronger focus on remote, low-traffic, and difficult-to-access areas.
Under the revised plan, the government will develop 100 new airports through a challenge-based model, with an estimated ₹12,159 crore allocated for this component. In addition, 200 modern helipads will be constructed, particularly in hilly regions, the North-East, island territories, and aspirational districts where building conventional airports is challenging. Helicopter services are expected to significantly improve last-mile connectivity in these areas, supported by an allocation of ₹3,661 crore.

The scheme also includes ₹400 crore for the procurement of domestically manufactured aircraft, promoting indigenous aviation manufacturing.
The revamped scheme enhances viability gap funding (VGF), offering 80–90% support to airlines operating regional routes, with a total allocation of ₹10,043 crore over five years. A new operational and maintenance (O&M) support component has also been introduced to ensure sustainability of smaller airports and helipads, which often face limited commercial activity.

Under this provision, ₹2,577 crore has been earmarked for a three-year period. Each Regional Connectivity Scheme airport will receive up to ₹3 crore annually, while helipads will be supported with up to ₹90 lakh per year to cover maintenance costs and ensure continued operations.
The government expects the revamped scheme to connect 120 new destinations and enable air travel for around 4 crore additional passengers. The expansion is likely to boost infrastructure in remote and hilly regions, support tourism, generate employment, and enhance access to essential services such as disaster response and medical evacuation.

Since its launch, the UDAN scheme has operationalised 663 routes and 95 aerodromes, with participation from 10 airlines. Around 1.62 crore passengers have flown under the scheme, with over 3.41 lakh flights completed, reflecting steady progress in improving regional air connectivity across India.

News by Rahul Yelligetti.