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Travel Radar - Aviation News > News > Aviation > Route Development > Indian cabinet approves Modified UDAN scheme
AviationRoute Development

Indian cabinet approves Modified UDAN scheme

Sunil Raj Kumar
Last updated: 2 April 2026 09:35
By Sunil Raj Kumar
2 Min Read
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View from inside a terminal building looking out through large floor-to-ceiling windows onto an airport apron, where two IndiGo aircraft are parked under a clear blue sky with an expansive red-earthed runway in the background.
An aircraft on the apron at Mopa Airport, Goa © Arun P Nair
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The Union Cabinet of India, chaired by Prime Minister Narendra Modi, has approved a modified UDAN (Ude Desh ka Aam Nagrik) scheme, extending it for the next ten years to improve regional air connectivity across the country.

The façade of Ayodhya International Airport terminal building, designed in a traditional Indian temple architectural style with pink sandstone-coloured columns, ornate detailing, and arched entrances, set against a hazy sky.
Ayodhya International Airport, airport developed under the RCS © Benison P. Baby

Inside the Announcement

According to an official press release from the Prime Minister of India, the central government has committed a total of 28,840 crore rupees to aviation infrastructure development across India.

Plans include the development of 100 new airports in Tier-2 and Tier-3 cities that are underserved or unserved by commercial aviation. The government will also provide three years of financial support for maintenance of the airports built under the scheme.

Airlines operating under the scheme will receive subsidies during the initial phase of route launches to offset operational costs, allowing the required headroom to build a sustainable operation before the support structure is eventually withdrawn.

The facade of Salem Airport in India showing the terminal area in a daylight with luggage trolley placed at the terminal front with a small eatery in the building
Salem Airport, a Tier-2 airport in the state of Tamil Nadu, India © Thamizhpparithi Maari

Where UDAN Stands Today

When UDAN was launched in October 2016, it was founded on a single idea: to increase air connectivity between developing cities and make flying affordable for ordinary travellers.

As of Feb. 28, 2026, 16.2 million passengers have flown across more than 300,000 flights, with over 663 routes operational across 95 airports nationwide under this scheme.

Beyond these figures, UDAN has catalysed a shift in India’s aviation ecosystem. The scheme has contributed to the growth of several regional carriers and diversified fleet operations across the industry, alongside emerging efforts to build a domestic aircraft ecosystem.

What do you think of the developments in this space? Let us know in the comment section below.

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BySunil Raj Kumar
Editor Intern - An Air Transport Management graduate from Cranfield University with a particular interest in network planning, route development, fleet planning, revenue management and aviation consulting. They are experienced in working with Excel, SQL and Python, alongside aviation intelligence platforms including OAG, CAPA and ch-aviation, using data analysis and industry insights to support commercial and strategic decision making within the aviation sector.
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