UDAN scheme to develop 100 airports from unserved airstrips, ₹12,159 crore allocated

Asked and answered by: Asked by Shri Bibhu Prasad Tarai and Shri Janardan Mishra; Answered by the Ministry of Civil Aviation (Minister Shri Kinjarapu Rammohan Naidu).

What the government said

• The next phase of UDAN was launched on 04.07.2026.
• The scheme targets 120 new destinations and 4 crore passengers over 10 years (F.Y. 2026-27 to 2035-36).
• Total outlay is Rs. 28,840 crore, including Rs. 12,159 crore for developing 100 airports from unserved airstrips.
• Rs. 3,661 crore is allocated for developing 200 heliports in Hilly, North-Eastern, and Aspirational (HINER) areas.
• A 'Challenge Mode' framework allows State Governments to nominate aerodromes, evaluated on land availability, infrastructure, feasibility, and traffic potential.
• The Union Cabinet approved the procurement of two HAL Dhruv helicopters and two HAL Dornier aircraft for regional services.
• A longer VGF (Viability Gap Funding) mechanism extends up to five years, progressively tapered to support commercial sustainability.

Also in the document

• The answer states that the Union Cabinet approved the procurement of specific indigenous aircraft (HAL Dhruv and HAL Dornier) to promote the domestic aerospace sector.
• The government specified that State Governments/UT Administrations may identify priority routes for inclusion in the bidding process.