200 helipads and 100 new airports are planned; the center has approved UDAN Scheme 2.0.

An ambitious plan to increase regional air connectivity over the next ten years was established on Wednesday as the Union Cabinet approved a redesigned UDAN initiative with a total cost of Rs 28,840 crore.The updated UDAN 2.0 plan will be put into effect between 2026–2027 and 2035–2036. With a capital investment of Rs 12,159 crore over the following eight years, the program seeks to create 100 airports by modernizing existing unserved airstrips.

Last-mile connection issues are also covered in the strategy, especially in steep, isolated, island, and aspirational areas. This includes the construction of 200 state-of-the-art helipads, each costing Rs 15 crore.Improving access to emergency services in challenging terrain is the goal of this component, which has a total allocation of Rs 3,661 crore over eight years.

The Cabinet has also approved the procurement of indigenous aircraft to address the shortage of small aircraft needed for operations in remote areas. This includes two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air. 

To support route expansion and ensure commercial viability in less-served markets, airlines operating on regional routes will continue to receive viability gap funding (VGF). A total of Rs 10,043 crore has been earmarked for this purpose over the next ten years.

To ensure long-term sustainability, the scheme provides for operation and maintenance (O&M) support for regional airports, which often face high recurring costs and limited revenue.  Financial assistance will be extended for three years, capped at Rs 3.06 crore annually per airport and Rs 90 lakh per helipad and water aerodrome. The total estimated outlay for this support is Rs 2,577 crore, covering approximately 441 aerodromes.

The three-year financial aid will be limited to Rs 3.06 crore per airport and Rs 90 lakh per water aerodrome and helipad. This support is expected to cost Rs 2,577 crore in total, encompassing about 441 aerodromes.

The program includes Rs 400 crore in budgetary support for the purchase of aircraft made in India, in keeping with the government’s effort for the “Make in India” policy. The government anticipates that the program will improve emergency response capabilities in rural locations, lower the cost of air travel, and provide connectivity to underserved regions, especially Tier-2 and Tier-3 cities.

As of February 2026, 663 routes across 95 airports, heliports, and water aerodromes had been operationalized under the original UDAN system, which was introduced in 2016. Over 1.62 crore people have been carried on more than 3.41 lakh flights undertaken under the scheme. These initiatives have greatly enhanced access to isolated areas and aided in the expansion of regional airlines nationwide.