Ministry of Civil Aviation Signs MoUs with 22 States to Launch Next Phase of UDAN Scheme

Key facts

• The Ministry of Civil Aviation (MoCA) signed MoUs with 22 states on 22 September for the next phase of the Regional Connectivity Scheme-UDAN, marking the launch of the Challenge Mode and a new Routes Bidding Round to expand regional air connectivity.
• The MoUs were signed with Andhra Pradesh, Bihar, Assam, Gujarat, Arunachal Pradesh, Chhattisgarh, Karnataka, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Punjab, Rajasthan, Sikkim, Tamil Nadu, Uttar Pradesh, Telangana, Tripura, Uttarakhand and West Bengal.
• The Union Cabinet approved the Modified UDAN scheme in March for 10 years from financial year 2026-27 to 2035-36 with a total outlay of Rs 28,840 crore through budgetary support, and the scheme was launched by Prime Minister Narendra Modi on July 4.
• Under the Modified UDAN scheme, 100 airports are proposed to be developed from existing unserved airstrips and 200 modern helipads are planned in hilly, remote, island and aspirational regions for last-mile connectivity.
• Around Rs 12,159 crore has been earmarked for development of 100 airports, Rs 2,577 crore for operation and maintenance support for around 441 aerodromes, Rs 3,661 crore for 200 modern helipads, and Rs 10,043 crore as viability gap funding for airline operators over 10 years.
• As part of the Atmanirbhar Bharat component, the scheme proposes procurement of two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air.
• The original UDAN scheme was launched in October 2016 to make air travel affordable and improve connectivity to underserved and unserved regions.
• As of July 2026, UDAN had operationalised 679 routes across 95 airports, heliports and water aerodromes, carrying more than 1.68 crore passengers through over 3.58 lakh flights.