India's small-town aviation push enters big new phase as Centre prepares to take UDAN wider and deeper

India’s regional aviation push is entering a new phase, with the Centre and states joining hands to take air connectivity deeper into underserved and unserved parts of the country.

The Civil Aviation Ministry on Tuesday said it had signed 21 agreements with states and Union Territories under the next phase of the UDAN scheme to strengthen regional air connectivity and aviation infrastructure.

The 21 memorandums of understanding were signed between the ministry, participating states and UTs, and the Airports Authority of India (AAI), the implementing agency for the UDAN (Ude Desh ka Aam Nagrik) scheme.


The agreements provide a framework for coordinated action by the Centre, states/UTs and AAI to identify, develop and operationalise aviation assets based on the connectivity needs and priorities of individual states and UTs.

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Civil Aviation Minister K Rammohan Naidu said the agreements would deepen cooperation between the Centre and states and make every state an equal partner in the country's development journey.

UDAN: The story so far

Since its launch, UDAN has operationalised 687 routes and 95 aerodromes, carrying around 1.71 crore passengers through more than 3.66 lakh flights, Naidu said.

He added that employment in the aviation sector had increased from around 3 million in 2014 to nearly 7.7 million currently, with the potential to reach 25 million by 2040.

The minister cited airports such as Tezu in Arunachal Pradesh and Purnea in Bihar as examples of how improved air connectivity can support regional economic development in areas that were earlier hundreds of kilometres away from an airport.

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The next phase of UDAN follows its inauguration by Prime Minister Narendra Modi in Jodhpur on July 4, 2026, and the UDAN Workshop held in July, where aviation stakeholders discussed the roadmap for the scheme's next phase.

UDAN's four new pillars

Naidu said Modified UDAN would be built around four pillars -- passenger affordability, operational sustainability, a transparent Challenge Mode for projects and promotion of indigenous manufacturing. The broader objective is to develop an ecosystem that supports the ambition of Made in India civil aircraft.

The ministry said the scheme was now moving from policy discussions and consultations to implementation, with focus on stronger Centre-state/UT partnerships, aviation infrastructure creation and wider regional connectivity.

Minister of State for Civil Aviation Murlidhar Mohol said Modified UDAN aims to add 120 new destinations and carry 4 crore additional passengers over the next ten years. More than 20 states are participating in the initiative, he said.

Naidu also launched the Challenge Mode portal for aerodrome development and released the scheme document for the next phase of UDAN route bidding.

UDAN to spreads its wings wider

Under the new mechanism, states and UTs can nominate airstrips and helipads for development through the dedicated portal. This will allow local administrations to identify locations with potential for air connectivity and enable aviation infrastructure to be developed or upgraded according to local requirements.

The next phase seeks to build on UDAN's existing gains and extend the benefits of air connectivity and aviation infrastructure to more regions, communities and citizens.