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India Approves Rs 28,840 Crore Ten-Year UDAN Overhaul to Expand Regional Air Travel

The redesign shifts airline support to the central budget to tackle route sustainability.

Overview

  • India’s Regional Connectivity Scheme, which the Cabinet approved Wednesday, will run for a decade with a Rs 28,840 crore outlay fully funded by the Centre.
  • 100 airports will be built by upgrading unserved airstrips, with Rs 12,159 crore earmarked over eight years to add terminals, navigation aids, and other basics needed for scheduled flights.
  • The plan sets aside Rs 10,043 crore in route subsidies over ten years and replaces the earlier passenger levy with direct budget support to airlines on selected regional routes.
  • The programme adds three-year operations and maintenance aid for smaller aerodromes, capped at Rs 3.06 crore per airport and Rs 0.90 crore per heliport, a Rs 2,577 crore step aimed at reducing the high closure rate seen on past UDAN routes.
  • The remote access push includes 200 modern helipads costing Rs 3,661 crore and the purchase of two HAL Dhruv helicopters and two HAL Dornier aircraft for Pawan Hans and Alliance Air to serve difficult terrain.