The MoUs were signed between the Ministry of Civil Aviation, participating States and UTs, and the Airports Authority of India (AAI), the implementing agency for UDAN. The framework provides for coordinated action to identify, develop and operationalise aviation assets based on regional connectivity requirements.
As part of the next phase, the Civil Aviation Ministry also launched the Challenge Mode Portal for Aerodrome Development and released the scheme document for the next round of UDAN route bidding. Under the Challenge Mode, States and UTs can nominate airstrips and helipads for development through the dedicated portal. Airlines will subsequently bid for identified UDAN routes through a competitive selection process.
The Modified UDAN scheme was approved in March 2026 with a total outlay of Rs 28,840 crore for 10 years from FY 2026-27 to FY 2035-36. It targets connectivity to 120 new destinations and aims to serve an additional 4 crore passengers over the next decade. The scheme also provides for the development of 100 airports and 200 modern helipads.
The Ministry said the new phase will focus on affordability, operational sustainability, a transparent Challenge Mode framework for infrastructure development and promotion of indigenous aerospace manufacturing. The scheme also provides financial support for regional airline operations through viability gap funding.
Since its launch in 2016, UDAN has expanded regional air connectivity across India. Recent government data shows that the scheme had operationalised more than 670 routes connecting 95 airports, heliports and water aerodromes by 2026, with more than 1.6 crore passengers travelling on UDAN services.
The latest MoUs and the launch of the Challenge Mode portal are intended to strengthen coordination between the Centre, States and UTs, AAI and airlines, while supporting the development of aviation infrastructure and new regional air routes.
