← Resources · September 02, 2026
Economics GS3 3 min read

India plans 100 new airports with ₹30,000 crore UDAN outlay

What happened
01

The Ministry of Civil Aviation announced plans to develop 100 new airports and 200 heliports over the next 10 years under the Regional Connectivity Scheme (Modified UDAN)

02

The Union Cabinet had earlier approved the Modified UDAN scheme for FY 2026-27 to FY 2035-36 with a total outlay of Rs 28,840 crore in budgetary support

03

India's airport count has grown from 74 in 2014 to over 160 currently, with a new airport or terminal completed roughly every 40 days over the last decade

04

The expansion is aimed at strengthening regional air connectivity and meeting growing domestic air travel demand

Static topic 1 of 2 · Economics

Regional Connectivity Scheme — UDAN (Ude Desh ka Aam Nagrik)

UDAN, meaning "let the common citizen fly," was launched on 21 October 2016 under the National Civil Aviation Policy (NCAP), 2016, as the Regional Connectivity Scheme (RCS). Its core objective was to make flying affordable for the common citizen by connecting underserved and unserved airports, largely in tier-2 and tier-3 towns. The first UDAN flight operated on the Shimla-Delhi route in April 2017.

Key Details

  • Nodal ministry: Ministry of Civil Aviation
  • Funding mechanism: Viability Gap Funding (VGF) to airlines for operating on loss-making regional routes, combined with airfare caps for a notified distance/duration
  • Originally funded through a Regional Connectivity Fund levy on other flights plus central and state government contributions
  • "Modified UDAN," approved by the Union Cabinet for FY 2026-27 to FY 2035-36 (₹28,840 crore total outlay), restructures the scheme with ₹12,159 crore earmarked for developing 100 airports from unserved airstrips, ₹3,661 crore for 200 heliports, ₹10,043 crore for VGF, and ₹2,577 crore for operations & maintenance support to airport/heliport operators
Connection to this news

The 100-airports, 200-heliports target and the ₹30,000-crore figure cited in current reporting are the operational rollout of the Modified UDAN scheme's approved ₹28,840-crore, ten-year outlay — testing whether students can distinguish the original 2016 RCS-UDAN from its 2026 "Modified" successor.

Static topic 2 of 2 · Economics

Airports Authority of India (AAI) — Institutional Mechanism

The AAI is a statutory body (Miniratna Category-I public sector enterprise) under the Ministry of Civil Aviation, established under the Airports Authority of India Act, 1994, effective 1 April 1995, by merging the International Airports Authority of India (1972) and the National Airports Authority (1986). It is responsible for creating, upgrading, and managing civil aviation infrastructure — airports, air traffic control, and cargo facilities — distinct from safety regulation (DGCA) and aviation security (BCAS).

Key Details

  • AAI develops/upgrades many UDAN airports and unserved airstrips; state governments typically provide land, security cover, and tax concessions (VAT/ATF) as counterpart support
  • DGCA (Directorate General of Civil Aviation) regulates air safety and airworthiness standards
  • BCAS (Bureau of Civil Aviation Security), an independent department since 1987, regulates aviation security
  • Three distinct institutions therefore operate under the Ministry of Civil Aviation: AAI (infrastructure), DGCA (safety regulation), BCAS (security)
Connection to this news

Large-scale airport and heliport construction under Modified UDAN is executed largely through AAI, making the AAI-DGCA-BCAS institutional distinction a recurring prelims trap when infrastructure announcements are in the news.

Key facts & data
  • UDAN (RCS) launched: 21 October 2016, under NCAP 2016
  • First UDAN flight: Shimla–Delhi, April 2017
  • Airports in India: 74 (2014) rising to over 160 currently
  • Modified UDAN duration: FY 2026-27 to FY 2035-36 (10 years)
  • Modified UDAN total outlay: Rs 28,840 crore (Rs 12,159 crore for 100 airports, Rs 3,661 crore for 200 heliports, Rs 10,043 crore VGF, Rs 2,577 crore O&M support)
  • AAI established: 1 April 1995, under the Airports Authority of India Act, 1994
Read it? Now lock it in. The quiz for this day’s brief covers this story.
Take the quiz