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India’s Skies Get a Major Boost: Cabinet Greenlights ₹28,840 Crore ‘Modified UDAN’ Expansion

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NEW DELHI – In a landmark move to revolutionize regional connectivity, the Union Cabinet has officially approved the ‘Modified UDAN’ (Ude Desh ka Aam Nagrik) scheme. With a massive financial outlay of ₹28,840 crore, the initiative aims to bring air travel to the doorstep of India’s hinterlands over the next decade.

Expanding the Horizon: 100 New Airports

The centerpiece of this upgraded policy is the ambitious plan to develop 100 new airports, heliports, and water aerodromes. This expansion is designed to bridge the gap between Tier-2 and Tier-3 cities and major economic hubs, ensuring that “the common citizen can fly” is no longer just a slogan but a logistical reality.

Key Highlights of Modified UDAN

The revamped scheme isn’t just about more runways; it’s about making regional aviation sustainable and accessible.

Massive Funding: The ₹28,840 crore budget will be utilized for infrastructure development and providing Viability Gap Funding (VGF) to airlines operating on underserved routes.

Focus on Remote Areas: Priority will be given to the North-Eastern region, hilly states, and islands to ensure they are integrated into the national economic mainstream.

Enhanced Infrastructure: Beyond traditional runways, the scheme includes significant investment in water aerodromes for seaplane operations and heliports for last-mile connectivity in rugged terrains.

Job Creation: The government estimates that the construction and operation of 100 new sites will generate thousands of direct and indirect jobs in the aviation, tourism, and hospitality sectors.

Why the ‘Modified’ Tag Matters

The transition from the original UDAN to the ‘Modified’ version addresses previous bottlenecks. By increasing the subsidy pool and streamlining the bidding process for airlines, the government aims to prevent route cancellations and ensure that smaller carriers can remain profitable while keeping ticket prices capped for passengers.

“This is a giant leap for India’s aviation sector. By doubling down on regional infrastructure, we are not just building airports; we are building economic corridors that will define the next decade of growth,” said a senior government official following the cabinet meeting.

What’s Next?

The Ministry of Civil Aviation is expected to begin the first round of bidding under the modified guidelines within the next quarter. State governments are also being encouraged to provide land and security at concessional rates to expedite the 100-airport target.

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