<p data-path-to-node="5">Launched under the National Civil Aviation Policy in October 2016, UDAN was designed with a transformative core objective: to bring affordable, reliable, and economically viable commercial aviation to India's unserved and underserved regions. The programme moved into operational reality in April 2017 with its inaugural flight connecting Shimla to New Delhi. By leveraging market-based airline selection, structured airfare caps, tax concessions, and Viability Gap Funding (VGF), UDAN lowered commercial risk for airlines while giving remote populations direct access to air travel. As of October 2026, ₹5,091.23 crore has been disbursed in VGF support, establishing a self-reinforcing regional aviation ecosystem.</p><p data-path-to-node="6">The scale of expansion achieved during UDAN’s first decade has propelled India's domestic aviation footprint to unprecedented heights. The total tally of operational airports nationwide surged from 74 in 2014 to 166 in 2026, establishing the country as the third-largest domestic aviation market globally. Alongside physical infrastructure, the civil aviation sector has emerged as a massive employment engine, with direct and indirect sector-related jobs growing from approximately 3 million in 2014 to nearly 7.7 million in 2026, carrying the potential to expand to 25 million jobs by 2040.</p><p data-path-to-node="7">A key focal point of the scheme has been bridging the geographical divides of difficult terrains, most notably across the North-Eastern Region. Hemmed in by challenging topography, these states long grappled with limited surface transport. Under UDAN, 90 priority routes have been operationalised across the North East, linking remote frontiers to state capitals and metropolitan gateways. Furthermore, out of 52 identified aerodromes, heliports, and water aerodromes in the region, 12 have been fully activated, ensuring critical medical evacuations, disaster resilience, and economic integration for remote communities.</p><p data-path-to-node="8">Building upon this operational foundation, the Government rolled out the Modified UDAN Scheme on 4 July 2026, spanning FY 2026-27 through FY 2035-36 with a dedicated financial outlay of ₹28,840 crore. This next iteration shifts focus toward long-term operational viability, system-wide sustainability, and domestic aerospace manufacturing. A vital financial anchor of the new framework includes ₹10,043 crore earmarked for airline Viability Gap Funding over ten years, structured with tapered financial assistance starting from the third year and exclusivity limits capped at three years to foster organic, market-driven route sustainability.</p><p data-path-to-node="9">Infrastructure development under Modified UDAN features substantial capital expenditure allocations aimed at building and upgrading grassroots aviation hubs. An allocation of ₹12,159 crore over eight years is designated to transform 100 existing, unserved airstrips into fully operational regional airports, averaging an investment of ₹100 crore per facility. Complementing fixed-wing expansion, ₹3,661 crore has been committed to constructing 200 modern helipads to unlock inaccessible areas. To guarantee operational continuity, ₹2,577 crore is earmarked for Operation and Maintenance (O&amp;M) assistance across approximately 441 aerodromes, providing capped annual subsidies of ₹3.06 crore per airport and ₹0.90 crore per heliport or water aerodrome.</p><p data-path-to-node="10">A landmark pillar of the revised scheme is the alignment with the Atmanirbhar Bharat initiative to foster indigenous civil aviation manufacturing. An outlay of ₹400 crore has been allocated to acquire two indigenous HAL Dhruv helicopters for Pawan Hans and two HAL Dornier 228 aircraft for Alliance Air. Deploying these locally manufactured aircraft directly targets regional connectivity across rugged, short-runway, and border environments. This operational push creates an anchor customer base for domestic aerospace manufacturing while insulating critical regional routes from foreign fleet dependency.</p><p data-path-to-node="11">To streamline implementation, the modern phase introduces a dedicated Centre-State/UT coordination architecture driven by 21 bilateral Memoranda of Understanding (MoUs) signed between regional administrations, the Central Government, and the Airports Authority of India (AAI). This cooperative framework is paired with a digital Challenge Mode Portal for Aerodrome Development, allowing States and Union Territories to competitively nominate local airstrips and helipads for funding. This demand-driven framework ensures that resource allocation directly targets regional economic hubs, industrial zones, and underserved population pockets based on local governance priorities.</p><p data-path-to-node="12">The practical impact of UDAN is reflected in local economic transformations across the country. In Bihar, the 2025 opening of Purnea Airport—equipped with the state’s longest 2.8 km runway—cut travel times to Kolkata and Patna to under two hours, unlocking global market access for local makhana and litchi farmers across ten districts. In Arunachal Pradesh, Tezu Airport connects over two lakh border-district residents, cutting journeys to Guwahati from ten arduous hours to just one hour while accelerating agro-exports like ginger and cardamom. Similarly, Jharkhand’s Deoghar Airport now welcomes over ten lakh annual pilgrims to Baba Baidyanath Dham and serves AIIMS Deoghar, while Rajasthan's Kishangarh Airport drives marble exports to the USA and UAE alongside hosting a Category 'A' Flying Training Organisation. Together, these regional hubs demonstrate how regional air access directly fuels local business, healthcare, tourism, and human mobility.</p>