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MoneyWireUDAN Scheme: Govt signs MoUs with 21 states to extend UDAN scheme for 10 years
UDAN Scheme

Govt signs MoUs with 21 states to extend UDAN scheme for 10 years

This story was originally published at 17:07 IST on 22 September 2026
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Informist, Tuesday, Sept. 22, 2026

 

NEW DELHI – Civil Aviation Minister Kinjarapu Rammohan Naidu Tuesday said his ministry has completed memoranda of understanding with 21 states to implement the next phase of its regional connectivity scheme Ude Desh ka Aam Nagrik, popularly known as UDAN. "21 states have entered into the MoU (memorandum of understanding) today and more states are also engaging with us so that we can do the MoUs as soon as possible," the minister said at a press conference. 

 

The UDAN scheme was in force for 10 years and has achieved its objective, benefiting over 15.4 million passengers across the country, the minister said. The scheme has been extended for 10 years by working together with states, he added. "The states were very excited with the new UDAN (scheme), they have come forward and have had these MoUs today."


The government is looking to go on a 'challenge mode' for the construction of airports, which is a key objective, Naidu said. The government is prioritising the construction of important airports and airports that can be built with the least effort. This will help the government increase the speed of the construction of airports, the minister said. "...we have created a system where the most important ones, the priority ones or the low hanging fruits, they get to be done first to increase the speed with which the airports are getting constructed." 

 

The aviation ministry aims to make the airports travel-ready in 18 months, down from the earlier average construction time of three years.

 

In addition to airports, Naidu also emphasised on the creation of heliports across the country, which will provide an advantage to the north-eastern, hilly, and island states of the country. "We have a target of 200 which we want to spread across the country so that the helicopter operations also can move forward, and we want to increase the manufacturing ecosystem in the country," Naidu said, adding that India is at a stage where it can build its own aircraft.

 

The minister lauded Hindustan Aeronautics Ltd. for its contribution to aviation manufacturing. "Now, international players are also interested to come and set shop in India, which is a great confidence booster for our aviation manufacturing ecosystem in the country," he said.

 

The government is looking at indigenous aviation manufacturing due to its potential to create high-skill jobs. India should have more than 350 airports by 2047, the minister said. It should also have at least five airlines with a minimum of 100 aircraft each to leverage the demand the country presents, he added.

 

The extension of the scheme with an outlay of INR 288.40 billion could have an economic impact of up to INR 600 billion, Naidu said. The government is set to sign a memorandum of understanding with West Bengal for the scheme on Sept. 28. The remaining states are trying to finalise the documentation for it, the minister said. "...very soon, probably in two-three weeks, we are going to close all the MoUs," he added.  End

 

Reported by Pratyush Kumar

Edited by Avishek Dutta

 

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