UDAN 2.0: The ₹28,840 Crore Leap for Indian Aviation

The Central government is set to launch the next phase of its flagship regional aviation programme, with the revamped UDAN (Ude Desh ka Aam Naagrik) scheme expected to be unveiled by Prime Minister Narendra Modi in Kolkata on June 20.

The modified Regional Connectivity Scheme (RCS)-UDAN will be implemented over a 10-year period from FY2026–27 to FY2035–36, backed by a budgetary allocation of ₹28,840 crore. The programme aims to further expand air connectivity to underserved and unserved regions, making air travel more accessible and affordable while supporting balanced regional development.

Building on the success of earlier phases, the updated scheme is expected to focus on enhancing connectivity to remote and emerging destinations, improving aviation infrastructure, and strengthening the viability of regional routes. The initiative is also intended to stimulate economic activity, tourism, and investment in smaller cities and towns across the country.

The new phase follows the Union Cabinet’s approval of the modified UDAN framework in March 2026. According to officials, the revamped programme has been designed to address operational challenges and infrastructure gaps identified during previous rounds of implementation, while creating a more sustainable and efficient model for regional air connectivity.

Since its launch in 2016, UDAN has played a key role in transforming India’s regional aviation landscape by connecting previously underserved destinations and bringing affordable air travel within reach of millions of passengers. The upcoming phase is expected to build on these achievements and further strengthen the country’s aviation network over the coming decade.

News by Rahul Yelligetti.