Government Signs Agreements with 21 States for UDAN Expansion

On September 22, 2026, the Ministry of Civil Aviation announced that it has entered into Memorandums of Understanding (MoUs) with 21 states and Union Territories as part of the next phase of the UDAN (Ude Desh ka Aam Naagrik) initiative, aimed at improving regional air connectivity. Civil Aviation Minister Rammohan Naidu described the UDAN scheme as a transformative programme that has significantly boosted air travel accessibility across India.

During the signing ceremony held in New Delhi, the Minister stated that the initiative has been extended for an additional ten years, with ambitions to develop 100 new airports and 200 modern heliports throughout the country. This phase is projected to benefit approximately 40 million passengers who will travel under the UDAN banner.

Mr Naidu further highlighted impressive job growth in the aviation sector, noting an increase from around 3 million jobs in 2014 to nearly 7.7 million currently. The sector is expected to create as many as 25 million jobs by 2040. Over the last decade, UDAN has facilitated the construction of more than 90 airports, making affordable air travel available to over 15.4 million passengers.

In addition to the signing of the MoUs, the event marked the launch of the Challenge Mode Portal for Aerodrome Development. This new feature is designed to expedite airport project implementation, reducing construction timelines from two to three years down to an ambitious target of just 18 months.

The updated programme includes a Route Bidding Process that aims to expand air services to underrepresented regions, thereby enhancing connectivity, mobility, and overall economic development, including tourism, trade, and employment opportunities.

The recent modifications to the UDAN scheme were approved by the Union Cabinet in March 2026. The total financial outlay for this next phase is estimated at ₹28,840 crore, with operations and maintenance support for new airports and heliports assured for up to three years. This support is projected to amount to approximately ₹2,577 crore for around 441 aerodromes across the country, ensuring sustainability and efficiency in regional air travel expansions.