Kamal Ghorui
Imagine boarding a flight from a small city airport that barely existed a few years ago, that’s the kind of connectivity India is now aiming to expand. The Centre has given the green signal to UDAN 2.0, a revamped version of the Ude Desh ka Aam Nagrik scheme, with an outlay of over Rs 28,000 crore to further boost regional air travel.The modified scheme focuses on strengthening regional air connectivity through new airport infrastructure, enhanced financial support for airlines, and operational assistance for smaller aerodromes. It builds on the original UDAN initiative launched in 2016, which has already connected 95 airports and facilitated over 3.41 lakh flights, carrying more than 162 lakh passengers.The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the launch and implementation of the Regional Connectivity Scheme – Modified UDAN (UDAN 2.0) for a 10-year period from FY 2026–27 to FY 2035–36, with a total outlay of Rs 28,840 crore.
How will UDAN 2.0 benefit consumers?
Aimed at significantly expanding affordable air connectivity across the country, especially in underserved and unserved regions, UDAN 2.0 is expected to bring wide-ranging benefits for consumers and the broader economy. The scheme will improve air connectivity to Tier-2 and Tier-3 cities, making air travel more accessible and affordable for a larger section of the population. It is also likely to boost tourism, trade and local economies by improving regional access and mobility. For consumers, it will enhance access to healthcare and emergency services in remote areas by reducing travel time to major centres. In addition, the scheme will strengthen regional aviation infrastructure, support indigenous aerospace manufacturing under the vision of Atmanirbhar Bharat, and contribute to the long-term goal of Viksit Bharat 2047 by building a more connected and inclusive transport network across the country.
Key features of the UDAN 2.0 scheme
Expansion of airport infrastructureIn a major push to bring unserved and underserved regions of India onto the aviation map, the Modi government on Wednesday approved a modified Regional Connectivity Scheme (RCS) for a 10-year period with a budget outlay of Rs 28,840 crore. Under the plan, 100 airports will be developed at existing unserved airstrips to strengthen regional connectivity, at a cost of Rs 12,159 crore.Support for aerodrome operation and maintenanceTo ensure sustainability of low-traffic regional airports, the government will provide Operation & Maintenance (O&M) support for three years. The assistance is capped at Rs 3.06 crore per airport annually and Rs 0.90 crore per heliport/water aerodrome. The total allocation for this component is Rs 2,577 crore for around 441 aerodromes.Development of modern helipadsThe scheme includes the construction of 200 modern helipads in hilly, remote, island and aspirational districts to improve emergency response and connectivity. Each helipad will cost around Rs 15 crore, taking the total outlay for this segment to Rs 3,661 crore.Viability gap funding (VGF) for airlinesAirline operators will continue to receive financial support under the scheme to operate regional routes. The government has proposed Rs 10,043 crore in VGF support over 10 years, helping improve route viability and encourage wider participation by carriers.Atmanirbhar Bharat aircraft acquisitionTo address the shortage of small aircraft and strengthen domestic manufacturing, the scheme includes procurement of indigenous aircraft and helicopters, including two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air.Since its launch in October 2016, the UDAN scheme has operationalised 663 routes across 95 airports, heliports and water aerodromes (as of February 28, 2026). It has enabled over 3.41 lakh flights and carried 162.47 lakh passengers, significantly improving connectivity in remote, hilly and island regions while promoting regional aviation growth.
