Regional air connectivity scheme UDAN to get 27 pc higher allocation in fiscal 2026-27

The governments ambitious regional air connectivity scheme or UDAN, will get nearly 27 per cent higher budgetary allocation in the fiscal 2026-27. According to the latest Budget documents, the regional air connectivity scheme or UDAN will get a higher allocation of Rs 550 crore in the next fiscal compared to Rs 434.50 crore in this financial year.

The government's ambitious regional air connectivity scheme or UDAN, will get nearly 27 per cent higher budgetary allocation in the fiscal 2026-27. The total budgetary allocation for the civil aviation ministry will rise marginally to Rs 4,699.92 crore for the next financial year. The allocation is pegged at Rs 4,688.03 crore for the current fiscal ending March 31, 2026, as per the revised Budget estimates for 2025-26. According to the latest Budget documents, the regional air connectivity scheme or UDAN will get a higher allocation of Rs 550 crore in the next fiscal compared to Rs 434.50 crore in this financial year. This will mark an increase of 27 per cent. The scheme mainly aims at the revival of unserved and underserved airstrips to enhance regional connectivity and improve air travel access in remote as well as underserved areas. Out of the total allocation for the ministry, an amount of Rs 47.39 crore will be set aside towards Customs Cost Recovery (CCR) charges to Airport Authority of India (AAI) and AAI Cargo Logistics and Allied Services Company Ltd. (AAICLAS) for tier II / III cities' airports. The scheme aims to reimburse the cost of deploying customs staff at 27 designated airports (15 cargo terminals and 12 passenger terminals). The government has not allocated any funds for the Production Linked Incentive (PLI) Scheme for Drones and Drone Components. There were expectations in some quarters that the PLI scheme would be reintroduced. In 2026-27, regulators DGCA (Directorate General of Civil Aviation) and BCAS (Bureau of Civil Aviation Security) will get higher allocations at Rs 342 crore and Rs 114 crore, respectively. Finance Minister Nirmala Sitharaman presented her ninth straight Budget on Sunday.

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