Modified UDAN Scheme
Why in News?
On 17 July 2026, the Union Cabinet approved the Modified UDAN (Ude Desh ka Aam Nagrik) Scheme for a 10-year period with an outlay of about ₹28,840 crore.
Vision and Timeline
- Extended Duration: The modified scheme will be implemented over a 10-year period, spanning from FY 2026–27 to FY 2035–36.
- Strategic Target: Aims to integrate 120 new regional destinations into the national map and extend affordable flying to 4 crore passengers.
- Alignment with National Goals: Anchored to the central government's Viksit Bharat @2047 vision to boost domestic trade, medical access, and regional tourism.
- Aerodrome Development: Allocates ₹12,159 crore to transform 100 unserved or underserved airstrips into fully functional commercial airports.
- Modern Helipad Expansion: Invests ₹3,661 crore to construct 200 modern helipads to bridge connectivity gaps in remote hilly terrains, island territories, and North-Eastern states.
- Operations & Maintenance (O&M) Support: Sets aside ₹2,577 crore to actively subsidize the day-to-day running costs of low-traffic regional airports for up to 3 years, preventing early-stage shutdowns.
- Extended Subsidy Blanket: Increases the Viability Gap Funding (VGF) support window for regional airlines from 3 years to 5 years.
- Direct Exchequer Funding: Shifts the burden of VGF subsidies away from regional ticket levies, funding them directly out of the government treasury instead.
- Indigenization Push: Promotes Atmanirbhar Bharat by prioritizing the procurement of locally manufactured aircraft and helicopters, such as the HAL Dornier (Hindustan 228) and HAL Dhruv.
- Boosting Agriculture: Enhances the existing Krishi Udayan logistics chain, enabling rapid export of local perishable goods like organic produce directly to international markets.
- Spurring Local Economies: Expected to trigger real estate, infrastructure, and tourism growth around newly added aviation clusters.
