Centre to select first 50 airports under modified UDAN scheme

The government will assess state-nominated sites for traffic, tourism potential and readiness as part of an ₹12,159 crore plan to develop 100 regional aviation facilities over eight years, potentially widening access to new regional consumer markets.

— Source published Sun, 16 Aug, 2026, 18:17 IST · First seen Sun, 16 Aug, 2026, 18:20 IST · Source The Hindu BusinessLine

What happened

Ministry of Civil Aviation · The Centre will select 50 airports for the modified UDAN scheme, part of an ₹12,159-crore plan to develop 100 regional aviation

Key facts

  • 50 airports in first batch
  • 100 airports and aerodromes over eight years
  • ₹12,159 crore estimated capital outlay
  • ₹3,661 crore for 200 helipads
  • ₹2,577 crore operational and maintenance support
  • Three years of financial assistance
  • ₹3.06 crore annual cap per airport
  • ₹0.90 crore annual cap per heliport or water aerodrome
  • Up to 441 airports, heliports and water aerodromes
  • VAT on ATF capped at 1%

Why this matters

Use the first-50 airport selection process to identify emerging regional hubs early, targeting partnerships, land options or local acquisition opportunities in markets where aviation access can accelerate consumer-market development.

What to watch

  • Publication of the first 50 selected airports and their state-level funding commitments.
  • Route awards, airline participation, minimum-guarantee support and announced flight frequencies under modified UDAN.
  • Passenger throughput, seat occupancy and frequency retention after the initial subsidy period.
  • Completion status of terminals, runways, navigation infrastructure and last-mile road or rail links.
  • Tourism, pilgrimage, industrial-corridor or convention investments tied to selected airport catchments.
  • Airport retail concession tenders, terminal commercial-area plans and lease terms.
  • Map the eventual first-50 airport list against store-network white spaces, tourism destinations, pilgrimage circuits and district income growth.
  • Prioritize asset-light pilots near likely airport catchments: highway QSR, compact convenience, pharmacy, travel accessories, local souvenir assortments and franchise formats.
  • Engage airport operators, state tourism boards and fuel/transport partners early for terminal concessions, advertising, pickup-point and co-marketing opportunities.
  • Build localized inventory plans for destination-specific demand, including regional food, gifting, seasonal apparel and multilingual payments/signage.
  • Avoid committing to large-format airport-adjacent stores until airline schedules, load factors and ground-transport links show sustained demand.