Regional Connectivity Scheme with a total outlay of 28,840 cr approved

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     The Union Cabinet, chaired by Narendra Modi, has approved the Regional Connectivity Scheme – Modified UDAN with a total outlay of Rs. 28,840 crore for a ten-year period from FY 2026–27 to FY 2035–36. The scheme aims to strengthen regional air connectivity, particularly in underserved and unserved areas, while promoting affordable air travel for the common citizen.

The initiative is expected to boost economic growth, trade, and tourism in Tier-2 and Tier-3 cities, while improving emergency response and healthcare access in remote and hilly regions. It also seeks to enhance the viability of regional airports and airline operators, support the indigenous aerospace sector under Atmanirbhar Bharat, and contribute to the vision of Viksit Bharat 2047.

Key components include the development of 100 airports from existing airstrips with an outlay of Rs. 12,159 crore, along with operational and maintenance support for around 441 aerodromes. The scheme also proposes the construction of 200 modern helipads to improve last-mile connectivity in remote areas. Additionally, Rs. 10,043 crore has been allocated for Viability Gap Funding to support airline operators. The acquisition of indigenous aircraft further strengthens domestic aviation capabilities, ensuring long-term sustainability and self-reliance in the sector.