The Union Cabinet has approved a modified UDAN (
Ude Desh ka Aam Nagrik) scheme worth Rs 28,840 crore aimed at strengthening regional air connectivity through new airport infrastructure, enhanced financial support for airlines and operational assistance for smaller aerodromes.
Under the revamped programme, 100 new airports will be developed in challenge mode, with an estimated average cost of Rs 100 crore per airport. The government has provided budgetary support of Rs 12,159 crore for this component to improve connectivity in remote and underserved regions.
The scheme also proposes the development of 200 modern helipads, particularly to improve access in Himalayan, North-Eastern and island regions, as well as aspirational districts. A budgetary allocation of Rs 3,661 crore has been earmarked for helipad construction.
In addition, the modified UDAN framework includes support for the acquisition of Made-in-India aircraft, backed by budgetary assistance of Rs 400 crore, with the objective of strengthening domestic aviation manufacturing capabilities.
To improve route sustainability, the government will provide Viability Gap Funding (VGF) support ranging from 80 per cent to 90 per cent for airlines operating under the regional connectivity scheme. This assistance will be tapered over a five-year period, with an overall budgetary outlay of Rs 10,043 crore.
The Cabinet has also approved operation and maintenance (O&M) support for RCS aerodromes for three years, recognising the higher operating costs faced by aircraft operators and airport developers in low-traffic regions. The scheme provides for an annual ceiling of Rs 3 crore per airport and Rs 90 lakh per heliport, supported by a budgetary allocation of Rs 2,577 crore.
Government said the updated UDAN scheme aims to deepen regional connectivity, improve accessibility in difficult terrains and support balanced economic development by integrating smaller towns and remote regions into the national aviation network.
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