The Ministry of Civil Aviation is scheduled to sign Memorandums of Understanding with 22 states on 22 September 2026 for the next phase of the Regional Connectivity Scheme-UDAN. The exercise will launch a Challenge Mode and a new Routes Bidding Round under the modified scheme.
UDAN Scheme
UDAN stands for Ude Desh ka Aam Nagrik and it is India’s Regional Connectivity Scheme for civil aviation. The scheme was launched in 2016 to improve air connectivity to smaller cities and underserved regions through subsidised regional routes.
Modified UDAN Framework
The Union Cabinet approved the Modified UDAN scheme in March 2026 for a ten-year period from 2026-27 to 2035-36. The scheme has a total budgetary support outlay of ₹28,840 crore and targets connectivity to 120 new destinations over the decade.
The revised framework also aims to enable four crore passengers to travel during the scheme period. It extends support to airlines from three years to five years and broadens eligibility for viability gap funding.
State Participation and Infrastructure Targets
The 22 participating states are Andhra Pradesh, Bihar, Assam, Gujarat, Arunachal Pradesh, Chhattisgarh, Karnataka, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Punjab, Rajasthan, Sikkim, Tamil Nadu, Uttar Pradesh, Telangana, Tripura, Uttarakhand and West Bengal. The next phase also includes plans for 100 new airports from existing unserved airstrips and 200 modern helipads.
The modified scheme provides operational and maintenance support for select Tier-2 and Tier-3 airports. It also uses Challenge Mode and Routes Bidding Round mechanisms for route allocation under regional aviation expansion.
Important Facts for Exams
- UDAN is the Regional Connectivity Scheme of the Ministry of Civil Aviation.
- The Modified UDAN scheme covers the financial years 2026-27 to 2035-36.
- Viability gap funding is a financial support mechanism used for economically unviable but socially useful projects.
- Tier-2 and Tier-3 airports are commonly linked with regional air connectivity in India.
Scheme Components
Challenge Mode is a route selection process used for competitive bidding among airlines. Routes Bidding Round is a mechanism for assigning regional routes under the UDAN framework.
