Infrastructure★ Must Know

PM Modi Launches the Modified UDAN Scheme to Expand Regional Air Connectivity

By TestNeeti Editorial TeamPublished Saturday, 4 July 2026 2 min readSource: ET GovernmentArticle 1 of 8

On 4 July 2026, Prime Minister Narendra Modi launched the Modified UDAN (Ude Desh ka Aam Nagrik) regional-connectivity scheme, giving a fresh push to affordable air travel to small cities and remote regions. The revamped scheme — cleared by the Union Cabinet earlier in the year — carries a total outlay of about Rs 28,840 crore over ten years (FY 2026-27 to FY 2035-36), fully funded by the Centre, and aims to develop around 100 new airports/heliports/water aerodromes and expand routes to underserved areas. Alongside the launch, the PM inaugurated the new terminal at Jodhpur airport and other projects. The Modified UDAN builds on the original UDAN launched in 2017 under the Regional Connectivity Scheme (RCS), deepening last-mile air links and helipad/helicopter connectivity in hilly and remote regions.

Key Facts & Details

9 points

1
PM Modi launched the Modified UDAN regional-connectivity scheme on 4 July 2026.
2
It has a total outlay of about Rs 28,840 crore over ten years (FY 2026-27 to FY 2035-36).
3
It targets around 100 new airports/heliports and expanded routes to underserved regions.
4
It is fully funded by the Central Government under the Regional Connectivity Scheme (RCS).
5
The PM also inaugurated the Jodhpur airport terminal.
6
It builds on the original UDAN (2017), deepening last-mile and remote-area air connectivity.

Deep Dive

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UDAN caps fares on select routes and supports airlines through viability gap funding to make regional flights affordable.
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The scheme is administered by the Ministry of Civil Aviation.
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Since 2017, UDAN has operationalised hundreds of routes and revived several unserved airstrips.

Exam Focus

What is the total outlay and duration of the Modified UDAN scheme launched by PM Modi in July 2026?

Exam Relevance & Angle

Flagship connectivity schemes are recurring government schemes / infrastructure GA facts. Examiners test the scheme (Modified UDAN), the outlay (~Rs 28,840 crore), the 100-airports target, the ministry (Civil Aviation) and the RCS link — clean, testable hooks.

Target Exams

SBI POSBI ClerkIBPS POIBPS ClerkIBPS RRB OfficerIBPS RRB AssistantRBI Grade BRBI AssistantNABARD Grade ASSC CGLSSC CHSLRRB NTPCRRB Group DLIC AAOUPSC CSEState PCS

Background & Context

UDAN (Ude Desh ka Aam Nagrik) is the flagship Regional Connectivity Scheme (RCS) launched in 2017 by the Ministry of Civil Aviation to make air travel affordable and expand connectivity to smaller towns and remote regions. It works by capping fares on select seats and giving airlines viability gap funding (VGF), while developing/reviving underserved airports and airstrips. The Modified UDAN, approved by the Union Cabinet for a ten-year horizon (FY 2026-27 to FY 2035-36) with a ~Rs 28,840 crore outlay, expands the programme to about 100 more airports/heliports/water aerodromes, with greater focus on helicopter and small-aircraft links in hilly and remote areas.