Cabinet Clears UDAN Phase-II to Build 100 New Airports, 200 Helipads Across India

The Union Cabinet has approved the second phase of the UDAN scheme to boost regional air connectivity and make air travel affordable for common citizens. The ambitious plan will develop 100 new airports and 200 helipads, with a major focus on remote and underserved regions.

New Delhi | 26 March 2026: In a major push to strengthen regional air connectivity and expand affordable aviation access, the Union Cabinet has approved the second phase of the UDAN (Ude Desh ka Aam Nagrik) scheme, paving the way for the construction of 100 new airports and the development of 200 helipads across the country.

The decision was announced by Union Minister Ashwini Vaishnaw on Wednesday, who said the government is committed to ensuring that air travel becomes accessible to ordinary citizens while improving connectivity in remote and difficult terrains.

The newly approved phase will be implemented over a 10-year period from financial year 2026-27 to 2035-36, with a total outlay of ₹28,840 crore. The expansion is expected to significantly enhance aviation infrastructure and provide a major boost to economic activity in emerging regions.

According to officials, the scheme will focus especially on hilly and geographically challenging areas, including the North-Eastern states, island territories, aspirational districts, and other regions where air access remains limited. The government aims to reduce travel time, improve emergency connectivity, and create new opportunities for trade, tourism, and investment through improved aviation networks.

In addition to creating new airports and helipads, the plan will prioritise modernisation and upgradation of existing airstrips, aerodromes, and runways. Authorities said the emphasis will be on making small airports operational and improving their capability to handle regular passenger flights.

A key component of the programme is the continued use of Viability Gap Funding (VGF) to attract airline operators to less profitable routes. Under the revised structure, the government will provide full financial support for the first two years of operations on selected routes, after which the assistance will be gradually reduced. The total VGF support proposed under the scheme is ₹10,043 crore.

The VGF model has been central to UDAN’s success in encouraging airlines to launch regional routes by covering part of the operational costs, particularly during the initial phase when passenger demand is still developing.

Officials believe the second phase will deepen the impact of the original UDAN programme, which has already connected multiple smaller towns to the national aviation grid. The new approval is expected to accelerate the expansion of regional air routes and provide improved mobility for people living far from major metropolitan hubs.

Alongside the aviation push, the Union Cabinet also cleared the Immigration and Visa Modernisation Programme 3.0, aimed at transforming the visa, immigration, and foreigner registration systems. The initiative is expected to make these processes fully digital, more secure, and significantly more user-friendly, improving efficiency at airports and border entry points.

Government sources indicated that the modernised system will strengthen national security while ensuring faster processing for travellers and foreign nationals.

In another significant policy move, the Cabinet has also formally approved India’s updated Nationally Determined Contribution (NDC) under the Paris Agreement. The step reinforces India’s climate commitments and aligns national development goals with long-term sustainability measures.

The combined approvals reflect the government’s broader strategy to strengthen infrastructure, improve governance through digitisation, and accelerate action on climate responsibilities, officials said.

With the second phase of UDAN now cleared, the aviation sector is expected to see renewed investment momentum, while citizens in remote regions may soon benefit from faster and more affordable travel options.

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