The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the revamped Regional Connectivity Scheme (RCS)-UDAN with a total outlay of ₹28,840 crore for a period of 10 years (FY 2026–27 to FY 2035–36).
Focus on Improving Connectivity in Underserved Areas
The revised UDAN scheme aims to:
- Enhance air connectivity in underserved and unserved regions
- Boost economic growth in Tier-2 and Tier-3 cities
- Promote trade and tourism
It will also make air travel more affordable and improve emergency response and healthcare access, especially in remote and hilly areas.
100 New Airports to Be Developed
Under the scheme:
- 100 airports will be developed from existing unused airstrips
- Total investment of ₹12,159 crore planned over the next eight years
This expansion is expected to significantly strengthen India’s regional aviation network.
Financial Support for Airport Operations
To address high operational costs and limited revenue at regional airports:
- Operational & Maintenance (O&M) support will be provided for 3 years
- Up to ₹3.06 crore per airport per year
- Up to ₹0.90 crore per heliport/water aerodrome per year
An estimated ₹2,577 crore has been allocated for around 441 airports.
200 Heliports to Improve Last-Mile Connectivity
The scheme also proposes:
- Development of 200 heliports
- Cost of ₹15 crore per heliport
- Total estimated cost of ₹3,661 crore over eight years
This will particularly benefit hilly, remote, island, and aspirational districts, improving last-mile connectivity and emergency services.
₹10,043 Crore VGF Support for Airlines
Airline operators under the scheme will receive Viability Gap Funding (VGF):
- Total support of ₹10,043 crore over 10 years
- To ensure sustainable operations on regional routes
Boost to Indigenous Aviation Sector
To strengthen domestic aviation capabilities under Atmanirbhar Bharat, the government has proposed:
- Procurement of 2 HAL Dhruv helicopters for Pawan Hans
- Procurement of 2 HAL Dornier aircraft for Alliance Air
Towards ‘Viksit Bharat 2047’
The government said the revamped UDAN scheme will:
- Improve regional connectivity
- Strengthen aviation infrastructure
- Support inclusive growth
and contribute significantly towards achieving the vision of ‘Viksit Bharat 2047’.
