Union Cabinet approved the Modified UDAN Scheme for a 10-year period from FY 2026–27 to FY 2035–36

¨     Union Cabinet approved the Modified UDAN Scheme for a 10-year period from FY 2026–27 to FY 2035–36.

¨     The scheme has a total financial outlay of ₹28,840 crore.

¨     It continues the UDAN (Ude Desh ka Aam Nagrik) programme to strengthen regional air connectivity across India.

¨     The scheme is supported through budgetary funding by the Government of India.

¨     The Modified UDAN Scheme aims to develop 100 existing airstrips into UDAN airports.

¨     More than ₹12,000 crore has been allocated for the development of these airports.

¨     An additional ₹2,500 crore has been earmarked for operations and maintenance (O&M) support for regional airports during their initial years of operation.

¨     The scheme proposes the development of 200 modern helipads in remote and difficult terrains.

¨     An investment of ₹3,661 crore has been allocated for the helipad component over eight years.

¨     Viability Gap Funding (VGF) support of more than ₹10,000 crore will continue for airlines operating under the scheme.

¨     The VGF subsidy period has been extended from 3 years to 5 years.

¨     The scheme promotes the use of indigenously developed aircraft and helicopters, including HAL Dhruv and Dornier platforms.

¨     It supports the Atmanirbhar Bharat initiative by strengthening India's domestic aviation manufacturing and regional connectivity.