UDAN Scheme Revamp
Why in News?
The UDAN (Ude Desh ka Aam Nagrik) Scheme is in the news because the Union Cabinet approved a major revamp (often called Modified UDAN or UDAN 2.0) on 25 March 2026. This updated phase is scheduled to run for ten years, from FY 2026-27 to FY 2035-36, with a substantial total outlay of ₹28,840 crore.
Key Information
- Expanded Infrastructure:
- 100 New Airports: Development of 100 new airports from unserved airstrips over eight years, backed by a ₹12,159 crore investment.
- 200 New Helipads: Focus on improving connectivity in hilly, remote, and island areas.
- Extended Financial Support:
- Longer VGF Period: Viability Gap Funding (VGF) for operators is extended from 3 to 5 years to ensure viability.
- Dedicated VGF Funding: ₹10,043 crore is earmarked specifically for VGF over 10 years.
- Operational Support:
- The government will provide 3-year support for O&M (Operations & Maintenance) for regional airports.
- Atmanirbhar Bharat Initiative:
- Includes ₹400 crore for sourcing indigenous aircraft, including HAL Dhruv helicopters and HAL Dornier 228 planes.
- Ambitious Targets:
- The scheme aims to connect 120 new destinations and serve roughly 4 crore passengers over the coming decade.
- Legacy Data (As of Feb 2026):
- To date, 663 routes are operational across 95 facilities, with over 1.62 crore passengers served since 2016.
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