Centre to sign MoUs with 22 states for next phase of UDAN

New Delhi: The Ministry of Civil Aviation will sign MoUs with 22 states on Tuesday for the next phase of the Regional Connectivity Scheme-UDAN, marking the launch of the Challenge Mode and a new Routes Bidding Round aimed at expanding regional air connectivity.

The MoUs will be signed with Andhra Pradesh, Bihar, Assam, Gujarat, Arunachal Pradesh, Chhattisgarh, Karnataka, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Punjab, Rajasthan, Sikkim, Tamil Nadu, Uttar Pradesh, Telangana, Tripura, Uttarakhand and West Bengal.

"A new chapter of UDAN unfolds on 22 September! With the signing of MOUs for the next phase, the launch of Challenge Mode and the Routes Bidding Round, UDAN is set to open new pathways for regional connectivity," the Ministry of Civil Aviation said in a post on X.


The ministry said the next phase would expand regional connectivity and strengthen the aviation ecosystem.

"Expanding the skies, strengthening connectivity. The next phase of UDAN will mark a new milestone with the signing of MoUs, launch of the Challenge Mode and a new Routes Bidding Round. Driving greater regional connectivity and building a stronger aviation ecosystem for a Viksit Bharat," it said.

The Union Cabinet had in March approved the Modified UDAN scheme for 10 years from financial year 2026-27 to 2035-36 with a total outlay of Rs 28,840 crore through budgetary support. The scheme was launched by Prime Minister Narendra Modi on July 4.

Under the Modified UDAN scheme, 100 airports are proposed to be developed from existing unserved airstrips, while 200 modern helipads are planned in hilly, remote, island and aspirational regions to strengthen last-mile connectivity.

The scheme also provides for operation and maintenance support for regional aerodromes, viability gap funding for airline operators and measures to strengthen indigenous aircraft capacity.

Around Rs 12,159 crore has been earmarked for development of 100 airports, while Rs 2,577 crore is proposed for operation and maintenance support for around 441 aerodromes. The scheme also provides Rs 3,661 crore for 200 modern helipads and Rs 10,043 crore as viability gap funding for airline operators over 10 years.

As part of the Atmanirbhar Bharat component, the scheme proposes procurement of two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air to address the shortage of small aircraft and helicopters required for operations in remote and difficult terrains.

The original UDAN scheme was launched in October 2016 with the objective of making air travel affordable and improving connectivity to underserved and unserved regions.

According to the Ministry of Civil Aviation, the scheme had operationalised 679 routes across 95 airports, heliports and water aerodromes and carried more than 1.68 crore passengers through over 3.58 lakh flights as of July 2026.

The Modified UDAN scheme is aimed at building on these gains by expanding connectivity to smaller cities and remote regions, strengthening regional aerodromes and supporting the sustainability of regional airline operations.