INDUSTRY
Rs 28,840-crore modified UDAN to fund air connectivity, airports and helipads cleared
- IBJ Bureau
- Mar 26, 2026
The Union Cabinet has cleared a modified UDAN (Ude Desh ka Aam Nagrik) Scheme with an outlay of Rs 28,840 crore for ten years. The scheme will include developing airports, related operations and maintenance activities, helipads and support for acquisition of India-made aircraft.
Airlines will be provided viability-gap funding (VGF) for operating UDAN routes, and the amount is estimated to be Rs 10,043 crore over the ten-year period starting from 2026-27.
Briefing mediapersons after the Cabinet meeting, Information and Broadcasting Minister Ashwini Vaishnaw has said that under the modified scheme, 100 airports will be developed from existing unserved airstrips with the help of State governments. The outlay in this regard will be Rs 12,159 crore over the next eight years.
The scheme aims to develop 200 modern helipads at Rs 15 crore each, amounting to a total requirement of Rs 3,661 crore over the next eight years, an official release has said.
The focus will be to develop helipads in priority for aspirational districts to improve last-mile connectivity and emergency response.
The scheme will provide up to Rs 3.06 crore per annum per airport and Rs 0.90 crore per annum per heliport or water aerodrome for three years to support their operation and maintenance (O&M) works.
The total amount is estimated to be Rs 2,577 crore for around 441 aerodromes, the release has added. According to the government, higher funding has been proposed, given the high recurring O&M costs and limited revenue streams for the Regional Connectivity Scheme (RCS)-only aerodromes.
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