UDAN 2.0: Cabinet Approves ₹28,840 Crore to Expand Regional Aviation Network, Targets 100 New Airports

The Union Cabinet has approved a revamped version of the UDAN scheme with a significant financial outlay, aimed at accelerating regional air connectivity and strengthening aviation infrastructure across underserved regions in India. 

Massive Infrastructure Push Across Regions 

A key pillar of the revised programme is infrastructure creation. The government plans to develop 100 airports under a competitive framework, with an estimated spend of ₹100 crore per project and total support of ₹12,159 crore. 

Alongside this, 200 new helipads will be built with a ₹3,661 crore allocation, targeting improved connectivity in remote and geographically challenging regions such as the North-East, island territories and hilly belts. 

Enhanced Financial Support for Airline Operations 

To ensure the viability of routes in underserved regions, the Centre will provide viability gap funding (VGF) covering 80–90% of operational costs, with gradual tapering over a 5-year period. The total allocation for this component stands at ₹10,043 crore. 

The scheme also incorporates operational and maintenance support for regional airports. The Cabinet has approved financial assistance for three years, capped at ₹3 crore annually per airport and ₹90 lakh per helipad, with an overall allocation of ₹2,577 crore. 

Policy Direction and Domestic Manufacturing Push 

The scheme will be implemented over a 10-year period, with a focus on converting existing airstrips into operational airports to widen the regional network. 

“The UDAN scheme will run for 10 years, and existing airstrips will be converted into airports to expand regional connectivity,” said Union Cabinet Minister Ashwini Vaishnaw.

Aligned with the Atmanirbhar Bharat initiative, the government has also earmarked ₹400 crore for procuring domestically manufactured aircraft.  

This includes platforms such as HAL Dhruv helicopters for Pawan Hans and HAL Dornier aircraft for Alliance Air, addressing the shortage of smaller aircraft suited for regional routes. 

Economic Impact and Track Record 

The revamped scheme is expected to stimulate economic activity in Tier-2 and Tier-3 cities by boosting trade, tourism and connectivity.  

It is also likely to enhance access to healthcare services and emergency response in remote locations. 

Since its launch in 2016, the UDAN programme has operationalised 663 routes spanning 95 airports, heliports and water aerodromes.  

As of February 2026, over 3.41 lakh flights have been conducted under the scheme, benefiting more than 1.62 crore passengers. 

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Conclusion 

With a substantial financial commitment and a sharper focus on infrastructure and viability, UDAN 2.0 marks a significant step in deepening India’s regional aviation network and unlocking growth in underserved geographies. 

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