Cabinet clears modified UDAN scheme with Rs 28,840 crore outlay
Revamping the regional air connectivity initiative, the Union Cabinet on Wednesday cleared a modified UDAN scheme with an outlay of Rs 28,840 crore for ten years that will provide funds for developing airports, related operations and maintenance activities, helipads and support for the acquisition of India-made aircraft.
Airlines will be provided Viability Gap Funding (VGF) for operating UDAN routes, and the amount is estimated to be Rs 10,043 crore over the ten-year period starting from FY 2026-27.
Briefing media persons after the Cabinet meeting, Information and Broadcasting Minister Ashwini Vaishnaw said that under the modified scheme, 100 airports would be developed from existing unserved airstrips with the help of State Governments, and the outlay in this regard would be Rs 12,159 crore over the next eight years.
Scheme aims to develop 200 modern helipads at Rs 15 crore each, amounting to a total requirement of Rs 3,661 crore over the next eight years (inflation-adjusted), an official release said.
The focus will be to develop helipads in priority and aspirational districts to improve last-mile connectivity and emergency response.
Towards Operation & Maintenance (O&M) works, the scheme will provide support for three years, capped at Rs 3.06 crore per annum per airport and Rs 0.90 crore per annum per heliport/water aerodrome.
The total amount is estimated to be Rs 2,577 crore for around 441 aerodromes, the release said. According to the Government, the funding is being proposed, given the high recurring O&M costs and limited revenue streams for the Regional Connectivity Scheme (RCS)-only aerodromes.
