Regional aviation gains altitude on UDAN 2.0

The Government of India announced UDAN 2.0 (Ude Desh ka Aam Nagrik) on March 25, 2026, earmarking a capital of Rs 28,840 crore to develop 100 new airports and 200 helipads over fiscals 2027-2036. The latest regional connectivity scheme considerably builds on UDAN 1.0, which had an outlay of Rs 8,523 crore and was implemented over fiscals 2017-2026.

Also, as compared with UDAN 1.0’s primary focus on enhancing regional connectivity by incentivising airlines through route-based viability gap funding (VGF), fare caps and revival of unserved/underserved airports, and strong emphasis on expanding network reach, UDAN 2.0 adopts a more holistic approach, such as dedicated allocations towards airport operations and maintenance (9%) to ensure continued operations on UDAN airports, development of helipads (13%) for serving underserved and far off regions, extended VGF support (35%) for sustaining thinner routes, and acquisition of indigenously manufactured aircraft (1%) to strengthen domestic aircraft manufacturing capabilities, apart from the core initiative of developing airports (42%).

Hence, UDAN 2.0 represents a step-up in both scale and scope, shifting from a connectivity initiative to a structural aviation infrastructure programme.