The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the revamped Regional Connectivity Scheme (RCS)–Modified UDAN, with a total outlay of ₹28,840 crore aimed at boosting regional air connectivity across India.
The new scheme will be implemented over a 10-year period from FY 2026–27 to FY 2035–36 and focuses on expanding aviation infrastructure in underserved and remote regions.
Under the plan, the government will develop 100 airports and airstrips, converting existing unserved facilities into operational hubs. This initiative is aligned with the broader goal of strengthening India’s aviation ecosystem and supporting the vision of Viksit Bharat 2047.
In addition to airports, the scheme proposes the development of 200 modern helipads, particularly in hilly, remote, and aspirational regions. These helipads are expected to improve last-mile connectivity and enhance emergency response services, including medical access.
The scheme also includes financial support for the operation and maintenance of smaller airports. Given the high costs and limited revenue potential of regional aerodromes, the government will provide support for up to three years to ensure sustainability.
Airline operators will continue to receive viability gap funding (VGF) to operate routes that may not be commercially viable initially. The government has allocated over ₹10,000 crore for this purpose over the next decade to encourage airlines to expand into smaller markets.
To address aircraft shortages in regional operations, the plan includes the procurement of indigenous aircraft and helicopters, supporting the Atmanirbhar Bharat initiative.
Since its launch in 2016, the UDAN scheme has significantly improved regional connectivity. Over 663 routes have been operationalised across 95 airports, heliports, and water aerodromes, with more than 162 lakh passengers benefiting from the initiative.
However, some routes were discontinued due to factors such as low demand, maintenance issues, and disruptions during the COVID-19 pandemic. The modified scheme aims to address these challenges and ensure long-term sustainability.
The government now plans to connect 120 new destinations and serve around 4 crore passengers over the next 10 years, further expanding access to affordable air travel across the country.
Officials said the revamped UDAN scheme will play a key role in boosting economic growth, trade, tourism, and connectivity, especially in tier-2 and tier-3 cities, while strengthening India’s position in the global aviation sector.
