In March 2026, the Union Cabinet approved the modified UDAN framework, which seeks to deepen regional connectivity | Photo Credit: SAMPATH KUMAR GP

The Centre is set to launch the next phase of its regional aviation programme, with the modified UDAN scheme expected to be unveiled by Prime Minister Narendra Modi in Kolkata on June 20.

Accordingly, the modified Regional Connectivity Scheme (RCS)-UDAN will be implemented over a 10-year period from FY27 to FY36 and is backed by a budgetary outlay of ₹28,840 crore aimed at expanding air connectivity to underserved and unserved regions across the country.

In March 2026, the Union Cabinet approved the modified UDAN framework, which seeks to deepen regional connectivity while addressing several operational and infrastructure challenges encountered during earlier phases of the scheme.

Notably, businessline was the first to report on the proposed revamp of the UDAN scheme and its key contours ahead of Cabinet approval.

Regional Infrastructure

Under the approved structure, the scheme aims to connect 120 additional destinations and facilitate air travel for nearly four crore passengers over the next decade.

A key feature of the programme is the development of 100 new airports from existing unserved airstrips through a challenge-based approach involving state governments.

Moreover, projects will be prioritised based on factors such as state support, infrastructure readiness and regional development requirements.

Besides, the scheme proposes operation and maintenance support for approximately 441 aerodromes to improve long-term sustainability of regional aviation infrastructure.

The modified framework also includes the development of 200 modern helipads in hilly, remote, island and aspirational regions with an outlay of ₹3,661 crore, aimed at strengthening last-mile connectivity and emergency response capabilities.

Furthermore, to improve the viability of regional routes, the scheme provides ₹10,043 crore towards viability gap funding (VGF) support for airline operators over the next 10 years.

Revised Framework

Sources had earlier told businessline that the revised framework is expected to extend VGF support from the existing three-year period to five years, with a tapering structure designed to help airlines gradually transition routes towards commercial sustainability while keeping fares affordable for a longer duration.

In addition, the scheme incorporates support for indigenous aviation capacity through the proposed acquisition of two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air under the Atmanirbhar Bharat initiative.

The revised framework also seeks to bring airport development and route development under a single umbrella, while addressing bottlenecks related to land acquisition, aircraft availability, leasing arrangements, maintenance support and regulatory approvals.

Launched in 2016 under the National Civil Aviation Policy, UDAN was designed to make regional air travel affordable while expanding aviation access beyond major metropolitan centres.

As of March 31, 2026, a total of 663 routes had been operationalised under the scheme. The programme has connected 95 aerodromes, including 17 heliports and two water aerodromes.

Published on June 9, 2026