Union Cabinet Approves Revamped UDAN Scheme to Strengthen Air Connectivity

March 28, 2026
Current Context: The Union Cabinet, chaired by PM Narendra Modi, approved the Modified UDAN scheme with a ₹28,840 crore outlay for 10 years (FY 2026‑27 to FY 2035‑36).
Union Cabinet Approves Revamped UDAN Scheme to Strengthen Air Connectivity
  • Funding will now come directly from the government budget, replacing the earlier passenger levy for stability.
  • The plan includes 100 new airports from unserved airstrips and 200 modern helipads for hilly, remote, and island regions.
  • Viability Gap Funding (VGF) support extended from 3 to 5 years, with ₹10,043 crore earmarked to help airlines sustain routes.
  • For the first time, the government will provide O&M support to small airports (₹3.06 crore per airport annually for 3 years).
  • The scheme promotes Atmanirbhar aircraft (HAL Dornier planes, HAL Dhruv helicopters) and uses a Challenge Mode to prioritize committed regions.

Question:

Q.1 The Modified UDAN scheme promotes Atmanirbhar Bharat by encouraging the use of which indigenous aircraft?
a) HAL Dornier planes and HAL Dhruv helicopters

b) Tejas fighter jets
c) Airbus A320
d) Boeing 737

Answer: a) The scheme promotes indigenous aircraft like HAL Dornier and HAL Dhruv to strengthen domestic aviation manufacturing.

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