♦ The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the launch of the Regional Connectivity Scheme – Modified UDAN, with a total outlay of Rs.28,840 crore on 25 March 2026. The scheme will be implemented over a 10-year period from FY 2026–27 to FY 2035–36, with full budgetary support from the Government of India.

♦ The revamped programme aims to deepen regional air connectivity, especially in underserved and unserved areas, while making air travel more affordable for the common citizen. 

♦ A key focus of the modified scheme is infrastructure expansion. The government plans to develop 100 new airports from existing unserved airstrips, with a capital outlay of Rs.12,159 crore over the next eight years. 

♦ To address sustainability concerns, operational and maintenance support will be extended for up to three years for regional aerodromes, capped at Rs.3.06 crore annually per airport and Rs.0.90 crore for heliports and water aerodromes, with a total estimated cost of Rs.2,577 crore covering around 441 facilities.

♦ In addition, 200 modern helipads will be developed at a cost of Rs.3,661 crore, targeting remote, hilly, island and aspirational regions to improve last-mile connectivity and emergency services.

♦ The scheme also provides for Rs.10,043 crore in viability gap funding (VGF) over 10 years to support airline operators on regional routes, recognising the need for sustained market development.