The Centre is set to invest Rs 28,840 crore over the next 10 years to expand India’s regional air connectivity under the Modified UDAN scheme, with the government targeting unserved and underserved parts of the country. The programme will run from FY 2026-27 to FY 2035-36 and is designed to support affordable air travel, improve connectivity to Tier-2 and Tier-3 cities, and strengthen access to remote, hilly and island regions. The Union Cabinet approved the 10-year programme in March 2026.
The expanded programme will include the development of 100 airports from existing unserved airstrips, construction of 200 modern helipads, support for the operation and maintenance of around 441 aerodromes and longer-term financial assistance for regional airline routes. The government has also linked the aviation expansion with domestic aircraft procurement and the development of India’s pilot-training ecosystem as airlines prepare for a much larger fleet.
Modified UDAN Scheme: ₹28,840 Crore Plan for the Next Decade
The Modified UDAN scheme represents the next stage of the government’s regional connectivity programme, which was originally launched in October 2016.
Under the new plan, the Centre will provide budgetary support across airport infrastructure, aerodrome maintenance, helipads and airline viability funding. The government says the objective is not simply to build airports but to make regional aviation more viable over a longer period.
Civil Aviation Minister Ram Mohan Naidu highlighted the scale of the expansion during a Parliamentary Consultative Committee meeting in Mysuru. He said the government had invested around Rs 10,000 crore in airport development and viability-gap funding during the previous decade and would now take the programme to a larger scale.
Modified UDAN: Key Numbers
| Component | Allocation / Target |
|---|---|
| Total Modified UDAN outlay | Rs 28,840 crore |
| Programme period | FY 2026-27 to FY 2035-36 |
| New/developed airports | 100 |
| Airport development allocation | Rs 12,159 crore |
| Modern helipads | 200 |
| Helipad allocation | Rs 3,661 crore |
| Aerodromes receiving O&M support | Around 441 |
| O&M support allocation | Rs 2,577 crore |
| Regional airline VGF | Rs 10,043 crore |
| Previous decade investment | Around Rs 10,000 crore |
The allocation shows that airport construction is only one part of the programme. A significant portion is also intended to support the continued operation of regional aviation services after infrastructure becomes available.
100 Airports To Be Developed From Existing Airstrips
One of the largest components of Modified UDAN is the development of 100 airports using existing unserved airstrips.
The government has earmarked Rs 12,159 crore for this component over eight years. The objective is to create additional aviation infrastructure in areas that currently lack adequate air connectivity.
Rather than concentrating investment around India’s established aviation hubs, the programme is intended to extend connectivity to smaller cities and underserved regions.
Airport Expansion Under Modified UDAN
EXISTING UNSERVED AIRSTRIPS
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Infrastructure
Development
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100 Airports
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Regional Air Routes
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┌─────┼─────┐
▼ ▼ ▼
Tourism Trade Jobs
│ │ │
└─────┼─────┘
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Regional Economic Growth
The government expects improved air connectivity to support tourism, trade and economic activity in Tier-2 and Tier-3 cities, while also improving access to healthcare and emergency services in remote areas.
200 Modern Helipads Planned For Remote Regions
Modified UDAN also includes a major expansion of helicopter infrastructure.
The programme proposes 200 modern helipads, particularly in hilly, remote, island and aspirational regions. The government estimates a total requirement of Rs 3,661 crore for this component over the next eight years, including inflation adjustments.
Helipads can provide connectivity where conventional airports are difficult or expensive to develop. They can also play an important role in emergency response, medical evacuations and access to geographically difficult areas.
Why Helipads Matter
| Use | Potential Benefit |
|---|---|
| Remote connectivity | Links difficult-to-reach areas |
| Healthcare | Faster emergency medical access |
| Disaster response | Supports evacuation and relief |
| Tourism | Improves access to remote destinations |
| Island connectivity | Provides flexible air links |
| Aspirational districts | Supports last-mile mobility |
The focus on helipads indicates that the next phase of regional aviation will not depend exclusively on conventional fixed-wing airport infrastructure.
Government To Support Around 441 Aerodromes
Building an airport is only the first step. Regional airports can face high operating costs because passenger volumes are often lower than at major metropolitan airports.
To address this problem, Modified UDAN provides operation and maintenance support for around 441 aerodromes, including airports, heliports and water aerodromes.
The scheme estimates Rs 2,577 crore for this support. Assistance is proposed for three years, capped at Rs 3.06 crore per year per airport and Rs 0.90 crore per year per heliport or water aerodrome.
This support is intended to improve the sustainability of regional aviation infrastructure.
O&M Support Structure
Regional Aerodrome
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Lower Passenger Volume
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Higher Cost Per Passenger
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Government O&M Support
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Better Operational Viability
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Continued Regional Connectivity
The approach recognizes that infrastructure can remain underutilized if airports cannot sustain basic operating costs.
Rs 10,043 Crore Viability Funding For Airlines
Another major part of Modified UDAN is financial support for airline operators.
The government has proposed Rs 10,043 crore in viability-gap funding over 10 years for airlines operating awarded regional routes.
This is important because airlines may find some regional routes commercially difficult during their initial years. Passenger demand can take time to develop, particularly in smaller markets where air travel is still relatively new.
VGF can help reduce the financial risk for airlines while routes establish a customer base.
Where The Rs 28,840 Crore Will Go
Modified UDAN Total
Rs 28,840 crore
│
┌──────┼───────────┬──────────┐
▼ ▼ ▼ ▼
₹12,159C ₹3,661C ₹2,577C ₹10,043C
Airports Helipads O&M VGF
The allocations show that airline viability support represents one of the largest components of the overall programme, alongside airport development.
UDAN Has Already Connected 95 Aviation Facilities
The government’s expansion plan builds on the results of the original UDAN scheme.
According to the Cabinet’s March 2026 announcement, 663 routes had been operationalized across 95 airports, heliports and water aerodromes as of February 28, 2026.
More than 3.41 lakh flights had operated under the scheme, carrying 162.47 lakh passengers.
UDAN’s Progress Through February 2026
| Indicator | Achievement |
|---|---|
| Operationalized routes | 663 |
| Airports/heliports/water aerodromes connected | 95 |
| Flights operated | More than 3.41 lakh |
| Passengers carried | 162.47 lakh |
| Original scheme launch | October 2016 |
| Data cut-off | February 28, 2026 |
The figures indicate that UDAN has already created a significant regional aviation network, providing a foundation for the larger Modified UDAN programme.
Government Wants Aviation To Drive Regional Growth
The expansion is being positioned as an economic-development programme rather than simply an aviation initiative.
Improved air connectivity can reduce travel time between smaller cities and major commercial centers. It can also make remote destinations more accessible to tourists and businesses.
For companies, regional airports can improve access to suppliers, customers and employees. For local economies, better connectivity can support hospitality, logistics, retail and other services.
The government has specifically highlighted potential benefits for farmers, exporters, businesses and communities as regional aviation expands.
Pilot Training Is Expanding Alongside Airport Infrastructure
The government’s aviation expansion also faces a workforce requirement.
India’s airlines have placed large aircraft orders, creating demand for pilots and other aviation professionals. The Civil Aviation Ministry is therefore also focusing on expanding domestic pilot-training capacity.
The number of Flying Training Organisations increased from 32 in 2020 to 41 in 2026, while flying bases increased from 32 to 63.
India’s Pilot Training Ecosystem
| Indicator | 2020 | 2026 | Change |
|---|---|---|---|
| Flying Training Organisations | 32 | 41 | +9 |
| Flying bases | 32 | 63 | +31 |
| FTO growth | — | — | About 28% |
| Flying-base growth | — | — | About 97% |
The near doubling of flying bases since 2020 is particularly significant as India attempts to build a larger aviation workforce domestically.
Government Plans Domestic Aircraft Procurement
Modified UDAN also includes a small but strategically significant aircraft procurement component.
The scheme proposes procuring two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air. The objective is to address shortages of smaller fixed-wing aircraft and helicopters needed for operations in remote and difficult terrain while supporting domestic aerospace manufacturing.
This links regional connectivity with the government’s broader Atmanirbhar Bharat manufacturing agenda.
The procurement could also help demonstrate the viability of domestically produced aircraft in regional operations.
The Aviation Industry Could See Wider Economic Benefits
The expansion of regional aviation could create opportunities across several parts of the economy.
Airport development can generate construction demand, while new routes can support airlines, ground handling companies, maintenance providers, logistics firms and hospitality businesses.
Smaller cities may also become more attractive locations for businesses if connectivity improves consistently.
Potential Economic Impact
| Sector | Potential Impact |
|---|---|
| Airlines | New regional routes |
| Airports | Infrastructure investment |
| Tourism | Easier access to destinations |
| Hospitality | Higher visitor potential |
| Logistics | Faster movement of goods |
| Construction | Airport and helipad projects |
| Aerospace | Demand for smaller aircraft |
| Pilot training | Higher demand for skilled workforce |
| Local businesses | Better access to larger markets |
The economic impact will ultimately depend on whether new routes generate sustainable passenger demand rather than relying permanently on government support.
The Bigger Picture
The Rs 28,840-crore Modified UDAN programme represents a substantial second phase of India’s regional aviation strategy. Over the next decade, the government plans to combine airport development, helipad construction, aerodrome maintenance support and airline viability funding to extend air connectivity beyond India’s major aviation hubs.
The programme also shows that India’s aviation expansion is being approached as a broader infrastructure and economic-development effort. Connecting 100 additional airports, supporting around 441 aerodromes and developing 200 modern helipads could improve access to smaller cities and remote regions, while pilot-training reforms and domestic aircraft procurement are intended to ensure that the industry has the workforce and equipment needed to support that expansion.
Looking Ahead
The next decade will test whether the government’s investment can convert infrastructure into sustainable regional air services. Airport construction and helipad development can improve physical connectivity, but long-term success will depend on passenger demand, airline economics, airport management and the ability of smaller markets to generate consistent traffic. The Rs 10,043-crore VGF allocation is designed to give airlines more time to establish regional routes, while O&M support is intended to prevent newly developed facilities from becoming financially unsustainable.
If the programme delivers as planned, Modified UDAN could significantly widen India’s aviation network by 2035-36. The combination of 100 airport developments, 200 modern helipads, hundreds of supported aerodromes and expanded domestic aviation training could strengthen tourism, trade, healthcare access and regional economic activity. The larger objective will be to ensure that India’s rapid growth in aviation is not concentrated only in major metropolitan hubs but reaches smaller cities and remote communities as well.
Frequently Asked Questions
What is the Modified UDAN scheme outlay?
The Centre plans to spend ₹28,840 crore on Modified UDAN from FY 2026-27 through FY 2035-36.
What infrastructure will the scheme develop?
The programme targets 100 airports developed from unserved airstrips and 200 modern helipads, alongside support for regional aerodromes.
How will Modified UDAN support airline routes?
The plan includes ₹10,043 crore in viability-gap funding over 10 years to help airlines establish awarded regional routes.
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