UDAN Scheme Next Phase; Centre to Sign MoUs With 22 States, Introduced Challenge Mode

The Ministry of Civil Aviation is moving into the next phase of the Regional Connectivity Scheme-UDAN with MoUs to be signed with 22 states on September 22, 2026, as per news reports. The phase also brings in a Challenge Mode and a fresh Routes Bidding Round as the government looks to add more regional air links. 

The states include Gujarat, Maharashtra, Karnataka, Tamil Nadu, Uttar Pradesh, West Bengal, Assam, Odisha, Rajasthan and several northeastern states. The ministry said the new phase will focus on expanding connectivity and strengthening the aviation ecosystem. 

UDAN Adds New Challenge Mode and Routes Round 

The new phase will use Challenge Mode along with the Routes Bidding Round to identify and open routes. The Ministry of Civil Aviation said the measures are intended to create more pathways for regional connectivity. 

The move is part of the Modified UDAN scheme, which will run for 10 years from FY2026-27 to FY2035-36 with a total outlay of ₹28,840 crore. 

100 Airports and 200 Helipads Planned 

Under the modified scheme, 100 airports are proposed to be developed from existing unserved airstrips. Another 200 modern helipads are planned for hilly, remote, island and aspirational regions. 

The government has allocated ₹12,159 crore for the airports and ₹3,661 crore for the helipads. Around ₹2,577 crore has also been provided for operation and maintenance support for about 441 aerodromes. 

₹10,043 Crore Set Aside for Airline Support 

The scheme includes ₹10,043 crore in viability gap funding for airline operators over the 10-year period. It also provides support for regional aerodromes and measures aimed at building indigenous aircraft capacity. 

Under its Atmanirbhar Bharat component, two HAL Dhruv helicopters are proposed for Pawan Hans and two HAL Dornier aircraft for Alliance Air. 

UDAN Has Already Connected 95 Airports 

As of July 2026, the original UDAN scheme had operationalised 679 routes across 95 airports, heliports and water aerodromes.  

These routes had carried more than 1.68 crore passengers through over 3.58 lakh flights. 

Read More: India’s Crude Import Spending Jumps 48% to $74.8 Billion in First 5 Months of FY27! 

Conclusion 

The next phase adds a new route-bidding process to the UDAN programme while putting fresh funding behind airports, helipads and regional airline operations. The 22-state MoUs will mark the start of this expanded phase of the scheme. 

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