India Launches Next Phase of UDAN Regional Connectivity Scheme

The Ministry of Civil Aviation signed Memoranda of Understanding (MoUs) with 19 to 21 Indian states on September 22 to launch the next phase of the Regional Connectivity Scheme-UDAN. Union Minister Ram Mohan Naidu announced that the ministry expects to finalize agreements with all states within two to three weeks, with West Bengal scheduled to sign on September 28.

Approved by the Union Cabinet of India in March, the modified scheme allocates approximately Rs 28,840 crore to Rs 30,000 crore over ten years from FY 2026-27 to 2035-36. The program introduces a challenge mode framework to reduce construction timelines from three years to 18 months, aiming to convert 100 unused airstrips into operational airports and establish 200 modern helipads in remote and hilly regions. Financial allocations include Rs 12,159 crore for airport development and Rs 10,043 crore for viability gap funding for airline operators.

To support indigenous aircraft capacity, the initiative includes the procurement of HAL Dhruv helicopters for Pawan Hans and HAL Dornier aircraft for Alliance Air. This expansion follows a decade of growth where the initial UDAN phase activated over 90 airports. The revamped program aligns with the Viksat Bharat 2047 vision, targeting over 250 functioning airports and a domestic market that could reach 50 crore passengers per year by 2030.