The Big Picture: What is the Plan?
The plan to develop 100 new airports is part of the 'Modified UDAN' scheme, a refreshed version of the government's flagship Regional Connectivity Scheme (RCS), also known as UDAN (Ude Desh ka Aam Nagrik). Approved in March 2026 for a ten-year period
from FY 2026-27 to FY 2035-36, this initiative has a total outlay of nearly ₹30,000 crore. The core idea is not to build most of these airports from scratch. Instead, the focus is on upgrading dozens of existing but unused or under-utilised airstrips scattered across the country, making them capable of handling commercial flights. The goal is to dramatically increase air connectivity in Tier-2 and Tier-3 cities, as well as remote, hilly, and island regions.
Why This Matters: The 'UDAN' Philosophy
The UDAN scheme, first launched in 2016, was founded on a simple but powerful idea: let the common citizen fly. Before UDAN, air travel in India was heavily concentrated in a few major metropolitan cities, leaving vast parts of the country disconnected from the aviation network. The scheme was designed to change this by making flying affordable and accessible. It does this through a market-based model where the government provides incentives to airlines to operate on routes that might not otherwise be commercially viable. By connecting smaller towns, the government aims to boost local economies, promote tourism and trade, and generate employment. The expansion from 74 operational airports in 2014 to over 160 today is largely credited to this push for regional connectivity.
How It Works: Viability and Incentives
To make regional routes attractive for airlines, the UDAN scheme uses a mechanism called Viability Gap Funding (VGF). Under this model, the central and state governments jointly provide financial support to airlines to cover losses on low-demand routes. In return, airlines must cap fares on a certain number of seats, with the original benchmark being around ₹2,500 for a one-hour flight, a figure that is indexed to inflation. The funding for this comes from a levy on flights operating on major, profitable routes. State governments also play a crucial role by providing land, security, and fire services for free or at concessional rates, and by reducing taxes on aviation fuel.
The Promise for Smaller Cities
For residents of smaller towns, the impact could be transformative. What is currently a long overnight train journey could become a one-hour flight. This enhanced mobility is expected to connect people to opportunities, markets to producers, and patients to better healthcare services. The government's focus extends to developing infrastructure beyond just airports, including 200 modern helipads in hilly and remote areas to improve last-mile connectivity. The Modified UDAN scheme aims to build on the progress already made, which has seen over 600 new routes launched and more than 1.6 crore passengers flying on them. For local economies, a functional airport can attract investment, create jobs, and put a town on the national tourism map.
The Hurdles and Realities
While the vision is ambitious, the execution faces significant challenges. A key issue has been the sustainability of flight routes. Many routes that were started under UDAN have been discontinued once the three-year VGF period ended, as they failed to become commercially viable on their own. Some reports indicate that about half of the operational routes have been discontinued. Other challenges include inadequate airport infrastructure, such as the lack of night landing facilities, and the choking of major metro airports, which makes it difficult for new regional airlines to get landing and parking slots. The success of these 100 new airports will depend not just on building them, but on ensuring there is sustained passenger demand and that airlines find the routes profitable in the long run.
