India's regional aviation story is entering a new chapter. After nearly a decade of connecting remote towns and underserved regions through the UDAN (Ude Desh ka Aam Nagrik) scheme, the government has unveiled a revamped version of the programme that promises to make regional air connectivity more sustainable, accessible and passenger-friendly.

The Modified UDAN Scheme, launched earlier this month by Prime Minister Narendra Modi, extends the programme for another ten years while introducing several policy changes designed to improve the financial viability of regional routes, support smaller airports and encourage airlines to expand services beyond metro cities.

Speaking at a stakeholder workshop in New Delhi, Union Civil Aviation Minister Kinjarapu Ram Mohan Naidu described the revised scheme as the result of years of feedback from airlines, airports, state governments and industry stakeholders.

"This is not merely an extension of the existing UDAN scheme. It is a modified framework developed after incorporating feedback received over the past decade to unlock the next phase of regional aviation growth," the minister said.

Making regional routes sustainable

One of the biggest challenges facing regional aviation has been ensuring that newly launched routes remain commercially viable after the initial government support ends. To address this, the government has decided to extend Viability Gap Funding (VGF) support for airlines from three years to five years under a phased model.

Under the revised funding structure, airlines will receive:

  • 100% VGF support during the first two years

  • 75% in the third year

  • 50% in the fourth year

  • 25% in the fifth year

The gradual reduction is intended to give airlines more time to build passenger demand before operating routes independently. Naidu said the move is expected to improve the long-term sustainability of regional services.

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More airports to become eligible

The government has also broadened the eligibility criteria for airports seeking financial support under the UDAN programme. Earlier, an airport was classified as underserved if it handled fewer than seven flights a week. Under the modified scheme, that threshold has been increased to 14 weekly flights, allowing many more airports to qualify for government assistance.

For priority regions such as the Northeast and hilly states, the eligibility limit has been further expanded to 21 weekly flights, recognising the critical role air connectivity plays in geographically challenging regions.

"Earlier, an airport was classified as unserved or underserved if it had fewer than seven flights a week. We have now increased that threshold to 14 flights a week, which will allow more routes to receive viability gap funding," Naidu explained.

The revised norms are expected to encourage airlines to launch additional services to smaller destinations while improving connectivity for millions of passengers living outside India's major metropolitan centres.

Support for airports struggling to stay operational

The government is also introducing operational and maintenance (O&M) support for smaller airports that continue to face financial challenges because of low passenger volumes. Many airports in Tier-II and Tier-III cities have struggled to recover operational costs despite improved connectivity.

Recognising this, the Centre will now step in to help airports maintain services where revenue alone is insufficient. "Some airports are facing losses due to lower passenger volumes. The government will extend a helping hand by providing operational and maintenance support wherever airports are unable to meet their operational expenses," Naidu said.

The move is expected to ensure continuity of services while giving regional airports sufficient time to develop passenger traffic.

Local economic growth

Beyond providing easier travel options, the government believes regional aviation is becoming a catalyst for economic development. Improved connectivity has enabled local industries, tourism and businesses to access larger domestic and international markets.

Highlighting some of UDAN's success stories, Naidu pointed to Darbhanga in Bihar, where improved air connectivity has enabled the region's famous Shahi Litchi to reach international markets such as Dubai.

Similarly, Kishangarh Airport has strengthened Rajasthan's marble industry while improving access for millions of pilgrims visiting Pushkar Temple and Ajmer Dargah each year.

He also cited destinations such as Keshod, Deogarh, Jharsuguda and Nanded as examples of how regional airports have transformed local economies. "Earlier people from Darbhanga had to travel nearly 150 kilometres just to catch a flight. Today, Darbhanga's Shahi Litchi is reaching global markets like Dubai. Kishangarh is another success story where improved connectivity has supported both exports and tourism," the minister said.

According to the Ministry, airport development also generates wider economic benefits across sectors including hospitality, transport, agriculture, education, healthcare and real estate.

Aviation growth story

The minister also highlighted the rapid transformation of India's aviation infrastructure over the past decade. India had 65 airports in 2001, which increased to 74 by 2014. Over the last twelve years, however, the country has added 90 new airports, including the revival of 55 previously unserved or underutilised airstrips.

"We are creating either a new terminal or a new airport every single month. Now we have to improve connectivity, and for that we have brought changes to the existing UDAN scheme," Naidu said. India is now the world's third-largest domestic aviation market, with approximately five lakh passengers travelling by air every day.

Despite global geopolitical uncertainties, the country recorded its highest-ever monthly domestic passenger traffic in May 2026, crossing 1.5 crore passengers.

"Even when the world was going through geopolitical tensions, we have been recording about five lakh domestic passengers every day. In fact, in May, India recorded its highest-ever monthly domestic air traffic, serving more than 1.5 crore passengers," Naidu said.

Passenger-centric vision

The next phase of UDAN is designed with the passenger at its centre. The government plans to develop 100 airports and 200 heliports over the next decade while continuing to improve connectivity to smaller cities, remote regions and tourism destinations.

The programme also includes the procurement of Hindustan-228 Dornier aircraft for Alliance Air and new helicopters for Pawan Hans, a move expected to strengthen indigenous aviation manufacturing while supporting India's growing maintenance, repair and overhaul (MRO) ecosystem under the Make in India and Atmanirbhar Bharat initiatives.

Minister of State for Civil Aviation Murlidhar Mohol reaffirmed the government's commitment to making air travel affordable and accessible for citizens, particularly those living in Tier-II, Tier-III and remote regions.

The next take-off

The revised UDAN scheme reflects a shift from simply creating new air routes to ensuring those routes remain operational, commercially viable and beneficial to local communities.

Extending financial support for airlines, assisting smaller airports, expanding eligibility for underserved routes and continuing airport development are all aimed at one larger objective, making air travel a practical option for more Indians.

For passengers, it means shorter journeys, better access to healthcare, education and employment, and stronger links between smaller towns and the country's growing aviation network. For India's aviation sector, it marks another step towards building a more connected, inclusive and resilient regional air transport system.