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PolitySource: Press Information Bureau

Modified UDAN Scheme: Enhancing Regional Connectivity in India

Wednesday, 22 July 2026
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Key Points

The Government of India has launched the Modified UDAN Scheme to enhance regional connectivity, building on the original UDAN programme's achievements. This initiative is crucial for UPSC aspirants, particularly for GS Paper 2 and 3, as it involves government policies and economic development. Last Updated: 22-07-2026

Key Facts About Modified UDAN Scheme

  • The Modified UDAN scheme was announced in the Union Budget for 2025–26 to improve connectivity to Tier-2 and Tier-3 cities.
  • It will operate for 10 years from FY 2026–27 to FY 2035–36 with a total outlay of ₹28,840 crore.
  • The scheme emphasizes airport infrastructure, operational support, and commercial viability in smaller markets.
  • It supports helicopters, helipads, and specialized aircraft for remote regions.
  • The original UDAN scheme launched in October 2016 operationalized 663 routes and carried over 162.47 lakh passengers.
  • Only 7% to 10% of routes remained financially viable post-subsidy.
  • The scheme proposes developing 100 airports with an outlay of ₹12,159 crore over eight years.
  • It includes Viability Gap Funding of ₹10,043 crore over ten years for regional routes.

India's Regional Aviation Growth

The Modified UDAN Scheme is significant for India's strategic goal of enhancing regional connectivity and economic growth. By improving access to remote areas, it aligns with India's vision of inclusive development. The scheme supports the expansion of aviation infrastructure, contributing to India's growth as the world's third-largest domestic aviation market, with operational airports increasing from 74 in 2014 to 165 by July 2026.

UPSC Relevance

The Modified UDAN Scheme is relevant for GS Paper 2 (Governance, Policies) and GS Paper 3 (Economic Development). In Prelims, questions could focus on the scheme's objectives, outlay, and key features. For Mains, it connects to themes of regional development, infrastructure growth, and government intervention in economic sectors. It may also be relevant for essays on transportation and regional connectivity.

FAQ Section

  • What is the Modified UDAN Scheme? The Modified UDAN Scheme is a revamped version of the original UDAN initiative, aimed at enhancing regional air connectivity and improving infrastructure in Tier-2 and Tier-3 cities.
  • Why is the Modified UDAN Scheme important? It addresses sustainability challenges faced by the original UDAN scheme, ensuring long-term operational viability and expanding connectivity to remote regions, thus supporting regional development.
  • What are the key features of the Modified UDAN Scheme? Key features include a 10-year operational period, a ₹28,840 crore outlay, development of 100 airports, Viability Gap Funding, and support for helicopters and specialized aircraft.

Detailed Coverage

  • About: Revamped version of the UDAN initiative for affordable air travel.
  • Outlay: Operates for 10 years with a total outlay of ₹28,840 crore.
  • Key Focus: Emphasizes airport infrastructure and operational support.
  • Specialized Connectivity: Supports helicopters and helipads for remote areas.
  • Need: Original UDAN faced sustainability challenges despite operationalizing 663 routes.
  • High Discontinuation Rates: Only 7% to 10% routes remained viable post-subsidy.
  • Abandoned Routes: 327 out of 663 routes fell into disuse by February 2026.
  • Development of Aerodromes: 100 airports to be developed with ₹12,159 crore over eight years.
  • Operation Support: High recurring costs supported for 441 airports and heliports.
  • Helipads Development: 200 modern helipads aimed at priority regions.
  • Viability Gap Funding: ₹10,043 crore proposed for low-demand regional routes.
  • Atmanirbhar Aviation: Deployment of HAL helicopters and aircraft for indigenous capacity.
  • Achievements: 679 routes operationalized, benefiting over 1.68 crore passengers.
  • Regional Impact: Improved connectivity to remote and hilly regions.
  • Travel Benefits: Reduced travel time and enhanced access to services.
  • Passenger Comfort: Initiatives like UDAN Yatri Cafés and free Wi-Fi services.
  • Conclusion: Aims for inclusive and resilient air connectivity across India.
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Practice Questions

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Recognizing the need for improved connectivity to underserved regions, the Modified UDAN scheme proposes a substantial investment in airport infrastructure. What is the estimated financial allocation for developing 100 airports from existing unserved airstrips as part of this initiative?