UDAN 2.0: Cabinet clears ₹28,840 crore plan to expand airports, helipads, regional airline support

The Union Cabinet has approved the Modified UDAN scheme (UDAN 2.0) with a total outlay of ₹28,840 crore, aimed at expanding regional air connectivity, developing new airports, and providing financial support to airline operators over a ten-year period from FY 2026-27 to FY 2035-36. The decision is expected to strengthen aviation infrastructure in Tier-2, Tier-3 and remote regions while making air travel more affordable for passengers.

The revamped scheme focuses on building a wider regional aviation network by supporting airport development, funding airline operations, and improving last-mile connectivity through helipads and small aircraft.

100 airports

A key feature of UDAN 2.0 is the plan to develop 100 new airports from existing unserved airstrips, with a capital outlay of about ₹12,159 crore over the next eight years. The government said the expansion is aligned with the Viksit Bharat 2047 vision of building a globally competitive aviation ecosystem.

In addition to construction, the scheme will also support the operation and maintenance of regional airports, where low passenger traffic often makes operations financially unviable. The government will provide O&M support for up to three years, with total assistance estimated at ₹2,577 crore for around 441 aerodromes, heliports and water aerodromes.

200 helipads

To improve connectivity in hilly, island and remote regions, UDAN 2.0 proposes the development of 200 modern helipads, with an estimated cost of ₹3,661 crore. These will be built mainly in aspirational districts and difficult-terrain areas to support emergency services, tourism and faster transport.

The scheme also continues Viability Gap Funding (VGF) for airline operators, which helps airlines run regional routes that are not commercially viable in the initial years. The government has allocated about ₹10,043 crore over ten years for airline support.

Indigenous aircraft

As part of the new phase, the government will also support acquisition of small aircraft and helicopters needed for regional routes. The plan includes procurement of HAL Dhruv helicopters for Pawan Hans and Dornier aircraft for Alliance Air, in line with the Atmanirbhar Bharat initiative.

UDAN’s first phase

The original UDAN scheme, launched in 2016, aimed to make flying affordable and connect smaller cities. So far, 663 routes across 95 airports, heliports and water aerodromes have been operationalised, with more than 3.41 lakh flights carrying over 1.62 crore passengers.

With UDAN 2.0, the government now aims to scale up regional aviation, improve connectivity in underserved areas, and boost tourism, trade and economic growth across the country.