MoCA to Sign MoUs with 22 States for Next Phase of UDAN Scheme

The Ministry of Civil Aviation (MoCA) will sign Memorandums of Understanding (MoUs) with 22 states on 22 September 2026 for the next phase of the Regional Connectivity Scheme, UDAN. This will mark the start of the Challenge Mode and a new Routes Bidding Round, aimed at expanding regional air connectivity across the country.

22 Participating States in Next Phase of UDAN

The MoUs will be signed with Andhra Pradesh, Bihar, Assam, Gujarat, Arunachal Pradesh, Chhattisgarh, Karnataka, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Punjab, Rajasthan, Sikkim, Tamil Nadu, Uttar Pradesh, Telangana, Tripura, Uttarakhand and West Bengal. This phase is meant to widen regional connectivity and strengthen the aviation ecosystem across these states.

Modified UDAN Scheme for 10 Years

The Union Cabinet approved the Modified UDAN scheme in March 2026, running for 10 years from FY 2026-27 to FY 2035-36, with a total outlay of Rs 28,840 crore. Prime Minister Narendra Modi launched the scheme on 4 July 2026. The original UDAN scheme began in October 2016 to make air travel affordable and connect underserved regions. By July 2026, it had made 679 routes operational across 95 airports, heliports and water aerodromes, carrying more than 1.68 crore passengers on over 3.58 lakh flights.

100 Airports and 200 Modern Helipads Are Planned

Under the modified scheme, 100 unserved airstrips will be developed into airports, and 200 modern helipads will come up in hilly, remote, island, and aspirational regions to improve last-mile connectivity. About Rs 12,159 crore is set aside for the airports, Rs 3,661 crore for the helipads, and Rs 2,577 crore for maintaining around 441 aerodromes. Another Rs 10,043 crore is earmarked as viability gap funding for airline operators over the 10 years.

UDAN Scheme Proposes Two HAL Dhruv Helicopters and Two HAL Dornier Aircraft

As part of the Atmanirbhar Bharat (self-reliant India) push, the scheme proposes buying two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air. This is meant to address the shortage of small aircraft needed for remote and difficult terrain.

Modified UDAN Scheme Total Budget: ₹28,840 Crore

The modified UDAN scheme has a total outlay of Rs 28,840 crore, spread across different components over 10 years:

1. Rs 12,159 crore for development of 100 airports
2. Rs 2,577 crore for operation and maintenance support for around 441 aerodromes
3. Rs 3,661 crore for 200 modern helipads
4. Rs 10,043 crore as viability gap funding for airline operators over 10 years.