India Unveils Ambitious ‘Modified UDAN’ Scheme to Revamp Regional Air Connectivity
NEW DELHI – In a significant push to democratize air travel and boost regional infrastructure, the Union Cabinet has officially approved the “Modified UDAN” (Ude Desh ka Aam Nagrik) scheme. Set to run from the 2026-27 financial year through 2035-36, the programme represents a massive financial commitment aimed at integrating remote corners of India into the national aviation network.
According to the Prime Minister’s Office, the initiative carries a total budgetary outlay of ₹28,840 crore (approximately $3.06 billion). A substantial portion of this investment—₹12,159 crore—is strictly earmarked for the development of 100 new airports, which will be transformed from currently unserved or underutilized airstrips over the next eight years.
Prioritizing Connectivity in Underserved Regions
Civil Aviation Minister K. Ram Mohan Naidu highlighted that the strategic expansion will place special emphasis on Tier 2 and Tier 3 cities. Furthermore, the government is targeting geographically challenging and strategically vital regions, including the Himalayas and the island territories of Lakshadweep and the Andaman and Nicobar Islands.
Minister Naidu noted the rapid pace of India’s aviation growth, citing that the national airport count has surged from 74 in 2014 to 166 today. On average, India has inaugurated a new airport or terminal roughly every 40 days over the past 12 years.
The Shift to a Hub-and-Spoke Model
While detailing the government’s infrastructure strategy, Naidu inaugurated India’s third hub-and-spoke operation at Ahmedabad airport. Following successful implementations in Varanasi and Amritsar, this model is designed to seamlessly connect passengers from smaller regional airports to international flights via major central hubs.
Ahmedabad was selected due to Gujarat’s significant overseas diaspora and the high demand for improved global air connectivity. The government now aims to replicate this successful model at 22 additional airports in the immediate future. Currently, Delhi serves as the country’s primary international gateway, offering direct services to 54 global destinations.
Addressing Past Challenges
The rollout of the Modified UDAN scheme comes as the government works to address findings from a critical 2023 audit by the Comptroller and Auditor General (CAG). The audit identified significant hurdles in the efficacy of the previous phases of the scheme.
Data revealed that out of 774 routes awarded up to UDAN-3, 403 routes (52%) failed to commence operations entirely. Among the 371 routes that did launch, only 112 successfully completed their full three-year concession period, and a mere 54 routes remained operational beyond that window.
By restructuring the framework and focusing on sustainable, demand-driven infrastructure, the Ministry of Civil Aviation hopes to ensure that this new wave of India airport expansion creates lasting, viable connectivity for the nation’s citizens.
