India Inks MoUs With 19 States for ₹29,000-Cr Revamped UDAN Scheme

22 Sep 2026, 09:14 by Vinay Kakkad · KalingaTV

New Delhi: India is committing Rs 29,000 crore over the next decade to overhaul regional aviation, shifting the focus of its flagship UDAN scheme from basic connectivity toward building long-term commercial viability across the country.

The Ministry of Civil Aviation formally set the ten-year expansion in motion on Tuesday, signing Memoranda of Understanding with 19 states in the presence of Union Civil Aviation Minister Ram Mohan Naidu. Central to this phase is a competitive “challenge mode” framework designed to convert dormant airstrips into active, operational airports.

Under this competitive mechanism, the central government plans to bring roughly 100 idle airstrips into full service over the coming year, according to Airports Authority of India Chairman Vipin Kumar. Kumar noted that numerous landing grounds nationwide currently sit unused, and the challenge framework will serve as the vehicle to revive them.

The broader target for the revamped programme includes adding 120 destinations, constructing 200 helipads, and handling four crore fliers.

Civil Aviation Secretary Samir Kumar Sinha explained ANI that the latest blueprint is not a routine continuation of UDAN, but an architectural redesign drawn from roughly ten years of operational experience. While the initial decade proved that regional travel demand exists, Sinha noted, the core task ahead is anchoring that demand within a dependable, commercially sustainable framework.

Sinha stressed that regional administrations remain best positioned to determine where air routes yield the maximum economic and social value. Under the agreed framework, the central government will supply policy guidelines, financial backing, and institutional oversight. Participating states and Union territories must reciprocate by delivering prompt access to land, road and public transit links, fire protection, utility lines, security, designated concessions, and working last-mile transport.

The move comes amid rapid expansion in India’s broader aviation footprint. The country ranks as the world’s third largest domestic aviation market, with domestic airports processing roughly 42 crore passengers during 2025–26, said Minister of State for Civil Aviation Murlidhar Mohol.

Mohol projected that annual passenger traffic will reach approximately 50 crore by 2030, attributing the growth to aggressive infrastructure development paired with fast-paced technology deployment rather than circumstance. He described Tuesday’s 19-state pact as the critical step that shifts the next phase of civil aviation from policy documentation to physical execution.

Since its inception in 2016, the UDAN scheme has established 687 regional routes across 95 facilities, covering traditional airports, heliports, and water aerodromes. Over that span, the network has sustained more than 3.58 lakh flights and carried upwards of 1.68 crore passengers, opening regular air links to remote locations such as Tezu, Pasighat, Jharsuguda, Pithoragarh, Kishangarh, and Rourkela.