120 new destinations, 4 crore passengers: Centre unveils big next phase of UDAN

The MoUs are aimed at strengthening Centre-State and Centre-UT cooperation for the development of aviation infrastructure and expansion of air connectivity to underserved and unserved regions, the ministry said in a statement.

The ceremony, held at The Ashok in Chanakyapuri, New Delhi, was inaugurated by Civil Aviation Minister Kinjarapu Ram Mohan Naidu in the presence of Minister of State for Civil Aviation Murlidhar Mohol, Civil Aviation Secretary Samir Kumar Sinha, Airports Authority of India (AAI) Chairman Vipin Kumar and senior ministry officials.

"With these MoUs, Team Bharat is joining hands to take India's regional aviation to greater heights. Under the leadership of Prime Minister Shri Narendra Modi, Viksit Rajya is the foundation of Viksit Bharat, with every State as an equal partner in this journey," Naidu said.

Highlighting the impact of the UDAN scheme since its launch, Naidu said 687 routes and 95 aerodromes had been operationalised, with more than 3.66 lakh flights carrying around 1.71 crore passengers.

"Since its launch, UDAN has operationalized 687 routes and 95 aerodromes, with more than 3.66 lakh flights carrying around 1.71 crore passengers," he said.

Naidu also highlighted the growth of employment in the aviation sector, saying jobs had increased from around 3 million in 2014 to nearly 7.7 million currently, with the potential to reach 25 million by 2040.

He cited airports such as Tezu in Arunachal Pradesh and Purnea in Bihar as examples of regional airports that are contributing to economic development by improving connectivity.

The next phase of UDAN builds on its inauguration by Prime Minister Narendra Modi in Jodhpur on July 4, 2026, and a workshop held on July 16, where civil aviation stakeholders discussed the roadmap for the scheme's next phase.

"Modified UDAN rests on four pillars: affordability for passengers, sustainability of operations, transparent Challenge Mode framework for projects and the promotion of indigenous manufacturing," Naidu said.

"Together, we are building an ecosystem towards the larger ambition of Made in India civil aircraft. That is the direction in which this next phase of UDAN is taking us," he added.

The next phase will now move from policy consultations towards on-ground implementation, with a focus on strengthening Centre-State and Centre-UT partnerships, developing aviation infrastructure and expanding regional air connectivity.

Minister of State for Civil Aviation Murlidhar Mohol said the modified scheme would seek to add 120 new destinations and facilitate travel for an additional four crore passengers over the next decade.

"Under the able leadership of Prime Minister Shri Narendra Modi, UDAN has come a long way since 2016, expanding regional and remote connectivity across the country. Now, with Modified UDAN, we are looking at 120 new destinations and 4 crore more passengers over the next ten years," Mohol said.

A total of 21 MoUs were signed between the Ministry of Civil Aviation, participating States and UTs, and the Airports Authority of India, the implementing agency for the UDAN scheme.

The agreements establish a framework for coordinated action between the Centre, States and UTs and AAI for the identification, development and operationalisation of aviation assets based on regional connectivity requirements and priorities.

Naidu also launched the Challenge Mode Portal for Aerodrome Development and released the scheme document for the next phase of UDAN route bidding.

Under the Challenge Mode, State governments and UT administrations will be able to nominate airstrips and helipads for development under the scheme through a dedicated portal. The initiative will allow them to identify locations with potential for aviation connectivity and facilitate the creation or upgradation of infrastructure based on local requirements.

The route-bidding process will invite airlines to bid for identified UDAN routes, enabling transparent and competitive selection of routes and operators. The process is aimed at expanding air services to unserved and underserved regions while supporting economic activity, tourism, trade and employment.

The event also featured a technical session on the next phase of UDAN, covering the Challenge Mode for aerodrome development and the upcoming bidding process for selection of routes. States and UTs, AAI, airlines and other aviation stakeholders discussed the implementation framework and the way forward.

The next phase of UDAN seeks to build on the gains achieved under the scheme and further strengthen India's aviation ecosystem, with the objective of extending the benefits of air connectivity and aviation infrastructure to more regions, communities and citizens.