Cabinet Clears ₹30,640 Crore for Improved Connectivity, Modern Immigration Systems, and Climate Targets

Written by: Team Angel OneUpdated on: 26 Mar 2026, 2:13 pm IST
The Cabinet has sanctioned a ₹30,640 crore package to improve regional air travel, modernise immigration systems, and meet climate targets in India.
Cabinet Clears ?30,640 Crore for Improved Connectivity
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

On March 25, 2026, the Union Cabinet approved a comprehensive package aimed at improving regional connectivity, revamping immigration processes, and addressing climate goals with a total financial commitment of ₹30,640 crore.  

This initiative underscores the government's dedication to fortifying infrastructure and streamlining travel to boost economic growth. 

Regional Connectivity Boost under Udan 2.0 

The government has revamped the Regional Air Connectivity Scheme (RCS) with a significant focus on developing 100 new airports, each with an average cost of ₹100 crore.  

A total of ₹12,159 crore has been allocated for this component. Additionally, 200 helipads will be constructed with a budget of ₹3,661 crore to enhance last-mile connectivity, especially in challenging terrains. 

Further supporting the domestic aviation industry, ₹400 crore is earmarked for acquiring Made-in-India aircraft.  

Viability gap funding support, amounting to ₹10,043 crore, will be provided to airlines, gradually decreasing over 5 years.  

The government will also offer 3-year operations and maintenance support for RCS airports and helipads, with an overall outlay of ₹2,577 crore. 

Immigration System Overhaul 

The continuation of the Immigration, Visa, Foreigners Registration and Tracking (IVFRT) scheme has been approved with an allocation of ₹1,800 crore from April 1, 2026, to March 31, 2031.  

The IVFRT 3.0 aims to transform India's immigration and visa ecosystem through technological advancements such as AI tools, biometric authentication, and mobile services. 

This programme is structured around emerging technology innovations, infrastructure transformation, and service optimisation to enhance system efficiency and security. 

Read More: India's Growth Forecast for FY27 Lifted to 7.1% by S&P Global, With Caution on Oil and Geopolitical Risks! 

Climate Commitments and Economic Impact 

India's updated Nationally Determined Contribution targets under the Paris Agreement include reducing emissions intensity of GDP by 47% by 2035 compared to 2005 levels and achieving 60% of cumulative electricity capacity from non-fossil sources by 2035.  

Additional targets involve creating a carbon sink of 3.5-4.0 billion tonnes of CO₂ equivalent. 

Officials anticipate that these initiatives will significantly boost tourism, trade, and the ease of doing business in India by enhancing aviation infrastructure and streamlining immigration processes. 

Conclusion 

The comprehensive ₹30,640 crore package approved by the Cabinet highlights a concerted effort to bolster connectivity, modernise immigration, and meet climate targets. These initiatives are poised to enhance regional travel, streamline immigration processes, and contribute towards India's environmental goals. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.   On March 25, 2026, the Union Cabinet approved a comprehensive package aimed at improving regional connectivity, revamping immigration processes, and addressing climate goals with a total financial commitment of ₹30,640 crore.  

This initiative underscores the government's dedication to fortifying infrastructure and streamlining travel to boost economic growth. 

Regional Connectivity Boost under Udan 2.0 

The government has revamped the Regional Air Connectivity Scheme (RCS) with a significant focus on developing 100 new airports, each with an average cost of ₹100 crore.  

A total of ₹12,159 crore has been allocated for this component. Additionally, 200 helipads will be constructed with a budget of ₹3,661 crore to enhance last-mile connectivity, especially in challenging terrains. 

Further supporting the domestic aviation industry, ₹400 crore is earmarked for acquiring Made-in-India aircraft.  

Viability gap funding support, amounting to ₹10,043 crore, will be provided to airlines, gradually decreasing over 5 years.  

The government will also offer 3-year operations and maintenance support for RCS airports and helipads, with an overall outlay of ₹2,577 crore. 

Immigration System Overhaul 

The continuation of the Immigration, Visa, Foreigners Registration and Tracking (IVFRT) scheme has been approved with an allocation of ₹1,800 crore from April 1, 2026, to March 31, 2031.  

The IVFRT 3.0 aims to transform India's immigration and visa ecosystem through technological advancements such as AI tools, biometric authentication, and mobile services. 

This programme is structured around emerging technology innovations, infrastructure transformation, and service optimisation to enhance system efficiency and security. 

Read More: India's Growth Forecast for FY27 Lifted to 7.1% by S&P Global, With Caution on Oil and Geopolitical Risks! 

Climate Commitments and Economic Impact 

India's updated Nationally Determined Contribution targets under the Paris Agreement include reducing emissions intensity of GDP by 47% by 2035 compared to 2005 levels and achieving 60% of cumulative electricity capacity from non-fossil sources by 2035.  

Additional targets involve creating a carbon sink of 3.5-4.0 billion tonnes of CO₂ equivalent. 

Officials anticipate that these initiatives will significantly boost tourism, trade, and the ease of doing business in India by enhancing aviation infrastructure and streamlining immigration processes. 

Conclusion 

The comprehensive ₹30,640 crore package approved by the Cabinet highlights a concerted effort to bolster connectivity, modernise immigration, and meet climate targets. These initiatives are poised to enhance regional travel, streamline immigration processes, and contribute towards India's environmental goals. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.   

Published on: Mar 26, 2026, 8:41 AM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

Know More

We're Live on WhatsApp! Join our channel for market insights & updates

Open Free Demat Account!

Join our 3.5 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy ₹0 Account Opening Charges

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 3.5 Cr+ happy customers