India begins transformative aviation journey with new Rs 28,840 crore UDAN scheme

New Delhi: The modified UDAN Scheme (Ude Desh ka Aam Nagrik), launched with an outlay of Rs 28,840 crore to bring more regional towns on the country’s air map, envisions the building of 100 new airports and 200 modern helipads as part of the another transformative aviation journey in India, according to a factsheet issued by the government on Friday.

The earlier Regional Connectivity Scheme (RCS) – UDAN, which was launched in October 2016, was a major step towards making air travel more affordable and accessible to citizens. It also expanded connectivity to underserved and unserved regions. India now ranks as the third-largest domestic aviation market globally. Over the past decade, the number of operational airports in the country increased from 74 in 2014 to 165 as of July 15, 2026.

In the new phase, the modified UDAN scheme will take this growth process forward with greater emphasis on expanding airport infrastructure, improving operational support, and creating a viable ecosystem for airline operators serving smaller markets. It seeks to consolidate earlier gains and address emerging demands, the factsheet explains.

Airline operators in smaller markets require adequate support mechanisms. Several regions face difficult geographical conditions. In such areas, helipads and specialised aircraft improve access to essential services. The Regional Connectivity Scheme–Modified UDAN has therefore been designed as a strengthened and forward-looking framework to address these requirements.

The development of aerodromes is a central pillar of the Modified UDAN Scheme. Under this component, a total outlay of Rs 12,159 crore has been proposed for the development of 100 airports from existing unserved airstrips to expand aviation infrastructure across the country over the next eight years.

The sustainability of smaller aerodromes depends on continued operations. The Modified UDAN Scheme, therefore, provides structured Operation and Maintenance support for a period of three years. This is capped at Rs 3.06 crore per annum per airport and Rs 0.90 crore per annum per heliport or water aerodrome. This component is estimated at Rs 2,577 crore and is expected to support approximately 441 aerodromes across the country.

In several parts of the country, conventional airport infrastructure may not always be feasible due to geographical constraints. The Modified UDAN Scheme proposes the development of 200 modern helipads focused on priority regions where connectivity gaps remain significant. These facilities are expected to improve access to healthcare, support emergency response operations, and facilitate administrative and economic activities. Each helipad has an estimated cost of Rs 15 crore. The total projected outlay for this component is Rs 3,661 crore over eight years.

To support airline operators and encourage sustained route development in smaller markets, the scheme continues the provision of Viability Gap Funding (VGF). Under the Modified UDAN framework, a total of Rs 10,043 crore has been proposed towards VGF over a ten-year period.

Airlines will receive funding support for up to five years. A tapered funding mechanism will begin from the third year, while exclusivity on routes will remain limited to three years. This structure is intended to balance market development with the gradual transition towards commercial sustainability.

The Modified UDAN Scheme also incorporates a strong focus on strengthening indigenous aviation capacity under the Atmanirbhar Bharat initiative. The scheme proposes two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air. These aircraft are designed to operate effectively in challenging conditions while supporting domestic manufacturing capability.

IANS