Union Civil Aviation Minister Kinjarapu Ram Mohan Naidu
New DelhiThe Centre designed the Modified UDAN scheme after incorporating feedback received over the past decade, moving beyond a mere extension of the existing programme to create a broader framework aimed at accelerating regional aviation growth, said Civil Aviation Minister Kinjarapu Ram Mohan Naidu.Video Credit: BusinesslineSpeaking at an UDAN workshop here on Thursday (July 16, 2026), the Minister said the new scheme seeks to unlock the next phase of regional aviation growth on the back of the strong foundation laid over the past decade through the expansion of airport infrastructure as well as improved connectivity.Accordingly, Naidu said the Centre has earmarked nearly ₹29,000 crore over the next 10 years under the Modified UDAN scheme, which was launched by Prime Minister Narendra Modi on July 4 from Jodhpur.Under the new framework, the eligibility threshold for an airport to be classified as underserved has been relaxed from fewer than seven weekly flights to 14 or fewer weekly flights.For priority regions, including the Northeast and hilly States, the threshold has been increased to 21 weekly flights, enabling a larger number of routes to qualify for viability gap funding (VGF) support.Funding structureThe Centre has also extended VGF support for airlines from three years to five years under a tapered funding structure.In the new framework, airlines will receive 100 per cent support during the first two years, followed by 75 per cent in the third year, 50 per cent in the fourth year and 25 per cent in the fifth year to improve the long-term sustainability of regional routes.Besides, the Minister said the government plans to develop 100 airports over the next decade and is working with states under a challenge-mode approach to accelerate airport infrastructure development.He added that all States and Union Territories participated in consultations on the revised scheme.Furthermore, the expanded programme envisages the development of 100 airports and 200 heliports while promoting indigenous manufacturing through the procurement of two Hindustan-228 Dornier aircraft for Alliance Air and two helicopters for Pawan Hans.According to Naidu, the initiative will strengthen the domestic maintenance, repair and overhaul (MRO) ecosystem while supporting the government’s Make in India and Atmanirbhar Bharat initiatives.Financial viabilityIn addition, the Minister said the Centre will, for the first time, provide operational and maintenance support to airports in tier-2 and tier-3 cities that are unable to attain financial viability because of low passenger traffic.Highlighting the growth of the aviation sector, Naidu said India has added 90 airports over the past 12 years compared with nine airports added between 2001 and 2014, including the revival of 55 unserved and underutilised airstrips into operational airports.He said India has emerged as the world’s third-largest domestic civil aviation market.Additionally, Naidu said the country currently records around five lakh domestic passengers every day and handled a record monthly domestic traffic of more than 1.5 crore passengers in May despite geopolitical tensions.Emphasising the wider economic impact of regional aviation, Naidu said airport development supports growth across tourism, hospitality, transport, real estate, agriculture, and education while creating employment opportunities.Published on July 16, 2026
