India is giving a big boost to regional air travel — and this time, it’s spending much more than before.
The Union Cabinet, led by Prime Minister Narendra Modi, has approved the Modified UDAN Scheme, a new regional aviation plan that will run for 10 years, from FY 2026–27 to FY 2035–36.
The government will spend ₹28,840 crore on the scheme. That is about six times more than what was spent on the original UDAN programme over the last decade.
The main goal is to make air travel affordable and connect 120 new destinations, including smaller cities and remote areas that have limited flight services.
This is not just another government announcement. The much bigger budget and ambitious expansion plan show that India is making a major push to improve regional air connectivity across the country.
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4 Pillars That Make Modified UDAN Different From Before
- Building New Airports: The government will develop 100 new airports by upgrading unused and underused airstrips. Around ₹12,159 crore has been set aside for this work over the next eight years.
- Support for Regional Airports: About 441 small airports and heliports will receive financial support for their daily operations and maintenance for up to three years. The government has allocated ₹2,577 crore for this.
- Financial Support for Airlines: Airlines flying on regional routes will receive ₹10,043 crore over the next 10 years. This support will help them continue operating routes that are important but may not be profitable.
- Made-in-India Aircraft: The government will buy two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air. These aircraft will improve air connectivity in remote, hilly, and hard-to-reach areas.
The plan is not just about building new airports. The government is also making sure there are enough aircraft and financial support to keep flights running regularly.
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The Problem the Old UDAN Could Not Solve
The original UDAN Scheme, launched in 2016, helped improve regional air travel in India. By February 2026, it had started 663 flight routes across 95 airports, heliports, and water aerodromes, with over 3.41 lakh flights carrying more than 1.62 crore passengers.
But the scheme also faced a major challenge.
Many regional flight routes could not survive once government subsidies ended. Several routes were also shut down because of COVID-19, aircraft shortages, airport limitations, and low passenger demand.
The Modified UDAN Scheme is designed to solve these problems. It aims to make regional flights more sustainable so they can continue operating even in the long run.
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Missed by Most, Important for All — The Real Story Inside UDAN
“Air travel is no longer a privileged access. With Modified UDAN, we are building on that momentum through stronger infrastructure, enhanced viability support, and a sharper focus on last-mile connectivity.”
— Murlidhar Mohol, Minister of State for Civil Aviation
The new scheme also brings a “Challenge Mode” approach. This means airports will have to meet clear performance and completion targets, instead of just receiving government funds.
India’s airport network has already grown from 74 airports in 2014 to 159 airports in 2024. Now, the government plans to connect 120 more destinations, especially in remote and underserved regions.
But the real question remains: Will these new routes become a long-term success—or will they face the same problems that forced many earlier UDAN routes to shut down?
For more new updates on government schemes, stay tuned with us on Bharat360.
Frequently Asked Questions
Q1. What is the total outlay of the Modified UDAN Scheme?
Ans. The scheme has a total outlay of ₹28,840 crore, funded entirely by the Government of India.
Q2. How long will the Modified UDAN Scheme run?
Ans. It will run for 10 years, from FY 2026–27 to FY 2035–36.
Q3. How many new airports will be built under Modified UDAN?
Ans. The scheme will develop 100 new airports by upgrading existing unserved airstrips.
Q4. What is Viability Gap Funding (VGF) in UDAN?
Ans. It is financial support given to airlines to help them operate regional routes that may not be fully profitable on their own.
Q5. How much VGF will airlines get under Modified UDAN?
Ans. Airlines will receive ₹10,043 crore in VGF support over 10 years.
