UDAN next phase takes off as Centre signs 21 pacts with states, UTs

New Delhi: The Civil Aviation Ministry on Tuesday signed 21 agreements with states and Union Territories as it moved to roll out the next phase of the UDAN scheme, aimed at expanding regional air connectivity and developing aviation infrastructure in underserved and unserved areas.

The memorandums of understanding (MoUs) were signed among the Ministry of Civil Aviation, participating states and UTs, and the Airports Authority of India (AAI), the implementing agency for the Ude Desh ka Aam Nagrik (UDAN) scheme.

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The agreements lay down a framework for the Centre, states and AAI to jointly identify, develop and operationalise aviation infrastructure based on regional connectivity requirements.

Civil Aviation Minister K Rammohan Naidu said the agreements would strengthen cooperation between the Centre and states in expanding India's regional aviation network.

"With these MoUs, Team Bharat is joining hands to take India's regional aviation to greater heights," Naidu said at the signing event.

687 routes, 95 aerodromes operationalised

Since its launch, UDAN has operationalised 687 routes and 95 aerodromes, according to the ministry. More than 3.66 lakh flights have operated under the scheme, carrying around 1.71 crore passengers.

Naidu said employment in the aviation sector has increased from around 3 million in 2014 to nearly 7.7 million currently and has the potential to reach 25 million by 2040.

The minister cited Tezu airport in Arunachal Pradesh and Purnea airport in Bihar as examples of airports improving connectivity in regions that were previously located hundreds of kilometres from regular air services.

The next phase of UDAN follows its launch by Prime Minister Narendra Modi in Jodhpur on July 4, 2026, and an UDAN workshop held later that month to discuss the roadmap with aviation-sector stakeholders.

120 new destinations on radar

Under Modified UDAN, the government is targeting 120 new destinations and an additional 4 crore passenger journeys over the next 10 years.

Minister of State for Civil Aviation Murlidhar Mohol said the scheme would build on the expansion of regional and remote connectivity achieved since UDAN was launched in 2016.

"Now, with Modified UDAN, we are looking at 120 new destinations and 4 crore more passengers over the next ten years," Mohol said.

More than 20 states are participating in the latest phase of the programme.

Naidu said Modified UDAN would rest on four pillars — affordability for passengers, sustainability of operations, a transparent Challenge Mode framework for projects and promotion of indigenous manufacturing.

The government also plans to use the programme to support its broader ambition of developing Made-in-India civil aircraft.

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Challenge Mode portal launched

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

Under the Challenge Mode framework, state governments and UT administrations will be able to nominate airstrips and helipads for development through the dedicated portal.

The mechanism will allow states and UTs to identify locations with potential demand for air connectivity and propose the development or upgradation of aviation infrastructure based on local requirements.

With the signing of the agreements and launch of the portal, the next phase of UDAN will move from policy consultations towards on-ground implementation.

The ministry said the programme will focus on three areas — strengthening Centre-state and UT partnerships, creating aviation infrastructure and expanding regional air connectivity to more parts of the country.

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