1.Ude Desh ka Aam Nagrik

Under the visionary leadership of Hon’ble Prime Minister Shri Narendra Modi, the UDAN (Ude Desh ka Aam Nagrik) Scheme was launched in October 2016 with the objective of making air travel affordable and enhancing regional air connectivity, particularly to Tier-II and Tier-III cities. Since its inception, the Scheme has transformed the regional aviation landscape by operationalising 687 routes and connecting 95 airports, heliports and water aerodromes, benefiting more than 1.71 crore passengers. Building on the success of the original UDAN Scheme and in line with the vision of Viksit Bharat 2047, the Union Cabinet chaired by the Hon’ble Prime Minister approved the launch and implementation of the Modified UDAN on 25 March 2026 with a total outlay of ₹28,840 crore over a period of ten years. The scheme ‘Modified UDAN’ was launched by Prime Minister Shri Narendra Modi on 4th July, 2026 from Jodhpur Airport.

2. Development of Aerodromes

A central pillar of the Scheme is the development of aerodromes. Under Modified UDAN, 100 airports will be developed from existing unserved and underserved airstrips to strengthen regional connectivity and expand aviation infrastructure across the country. This component aligns with the vision of Viksit Bharat 2047, which places strong emphasis on modern infrastructure, improved accessibility and the creation of a globally competitive aviation ecosystem. An outlay of ₹12,159 crore has been proposed for this purpose over the next eight years.

3. Operation and Maintenance (O&M) Support

Recognising that the viability of smaller aerodromes depends not only on their creation but also on their continued functioning, the Scheme provides Operation and Maintenance (O&M) support. Many RCS-only aerodromes face high recurring costs alongside limited revenue streams in their initial years of operation. To address this challenge, Modified UDAN proposes O&M support for a period of three years, capped at ₹3.06 crore per annum per airport and ₹0.90 crore per annum per heliport or water aerodrome. This component is estimated at ₹2,577 crore and is expected to support approximately 441 aerodromes.

4. Development of Modern Helipads

To improve access in regions where conventional airport infrastructure may not always be feasible, the Scheme proposes the development of 200 modern helipads in hilly, remote, island and aspirational regions. These areas often face distinct connectivity constraints, particularly where speed and accessibility are critical for healthcare access, emergency response and public service delivery. With an estimated cost of ₹15 crore per helipad, the total projected outlay for this component is ₹3,661 crore over the next eight years.

5. Viability Gap Funding (VGF) for Airlines

To support airline operators and encourage sustained route development, the Scheme continues the provision of Viability Gap Funding. Under Modified UDAN, ₹10,043 crore has been proposed towards VGF over a ten-year period. Airlines will receive funding support for five years, with a tapered funding mechanism from the third year onward, while exclusivity of operations will continue to be limited to three years. This structure is intended to provide longer-term support for market development while encouraging progressive commercial sustainability.

6. Atmanirbhar Bharat and Indigenous Aviation Capacity

The Scheme also incorporates an important Atmanirbhar Bharat dimension by supporting the acquisition of indigenous aviation assets required for operations in remote and difficult terrains. In order to address the shortage of small fixed-wing aircraft and helicopters suited to such routes, it has been proposed to procure two HAL Dhruv helicopters for Pawan Hans Limited and two HAL Dornier aircraft for Alliance Air. This step is expected to strengthen regional operations while promoting the indigenous aerospace sector and advancing domestic manufacturing capability in aviation.

7. Benefits of Modified UDAN

Modified UDAN is expected to deliver far-reaching economic and social benefits by significantly expanding access to affordable air travel across the country. Through increased availability of seats under UDAN fares, the Scheme will make air travel accessible to a larger section of the population and open up air connectivity to crores of citizens. By providing sustained operational support and Viability Gap Funding, the Scheme will strengthen the commercial viability of regional routes and encourage airlines to expand their networks into underserved markets. It is also expected to foster the growth of India’s aviation ecosystem by encouraging the launch of new airline operators and creating opportunities for expanded regional aviation services. The Scheme will accelerate aviation infrastructure development through the creation of new airports and modern helipads, thereby improving connectivity to remote, hilly, island and aspirational regions. Enhanced access to these areas will facilitate better integration with economic centres, tourist destinations and essential public services, ensuring that underserved regions are connected to vital services and growth opportunities. The development of helipads and improved regional aviation infrastructure will further strengthen emergency response capabilities, particularly for medical evacuations, disaster management and time-sensitive public service delivery. In addition, the induction of aircraft and helicopters designed for operations in remote and challenging terrains will improve connectivity across diverse geographical regions of the country. Modified UDAN also advances the vision of Atmanirbhar Bharat by promoting the acquisition and deployment of indigenous aviation assets, thereby supporting domestic manufacturing, strengthening India's aerospace sector and reducing dependence on imported platforms. Overall, by combining affordable connectivity, route sustainability, infrastructure expansion, improved access to remote regions, enhanced emergency response, support for domestic production, promotion of new airline operators and broader market development, Modified UDAN lays the foundation for the next phase of inclusive and sustainable aviation growth in India while contributing to the vision of Viksit Bharat 2047.

8. Implementation of Next Phase of UDAN Scheme