The government is finalising an upgraded version of the UDAN (Ude Desh Ka Aam Nagrik) regional air connectivity scheme, with a proposed investment of ₹30,000 crore, industry sources confirmed. The enhanced framework aims to extend the programme beyond April 2027 and strengthen India’s regional aviation infrastructure.
The proposal was recently examined by the Expenditure Finance Committee (EFC) under the Ministry of Finance, which is expected to take a decision soon. Following EFC clearance, the proposal will move to the Union Cabinet for approval.
Funding Allocation
Under the new outlay:
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₹18,000 crore is designated for developing new airports,
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₹12,000 crore is set aside as viability gap funding (VGF) to support airlines serving remote and underserved routes.
The revised UDAN scheme will continue promoting the development and expansion of airports while offering financial support and concessions to airlines from both central and state authorities.
Upgraded Scheme Objectives
The expanded framework seeks to overcome earlier operational challenges, attract greater private-sector participation, and improve last-mile air connectivity in remote areas. Introduced in October 2016, UDAN was designed to make air travel affordable and accessible, with the first flight inaugurated in April 2017 between Shimla and Delhi.
The initial phase, supported by more than ₹8,000 crore, enabled the operationalisation of 649 out of 915 approved routes, connecting 92 unserved and underserved airports, along with 15 heliports and two water aerodromes. Still, several airports remain inactive.
The proposed expansion aligns with commitments made in Union Budget 2025–26, signalling a renewed thrust on transforming regional aviation across India.
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