The Union Cabinet approved the Regional Connectivity Scheme – Modified UDAN, extending the original UDAN scheme launched in 2016. The revised scheme focuses on connecting unserved and underserved airports, helipads, and water aerodromes across India. It introduces route-based Viability Gap Funding, removes seat caps, enables seaplane operations, and targets aspirational districts and remote regions. The Ministry of Civil Aviation will administer it with a central outlay supporting airline operators to make air travel affordable for common citizens.

UDAN — Ude Desh ka Aam Naagrik — was launched in October 2016 under the National Civil Aviation Policy (NCAP) as India's first regional air connectivity scheme. Its core mechanism is Viability Gap Funding (VGF): because thin regional routes are commercially unviable, the government subsidises airlines operating them, splitting the cost between Centre and States. The original scheme capped airfares at ₹2,500 for one-hour flights and mandated a fixed number of subsidised seats per flight.

Modified UDAN departs from this one-size-fits-all model. Key changes include: route-based VGF calculation (subsidy tied to specific route economics rather than blanket fare caps), removal of the fixed seat cap, explicit inclusion of helipads and water aerodromes to enable seaplane integration, and a special thrust on aspirational districts and border areas — aligning the scheme with broader goals of regional equity and security.

The scheme sits at the intersection of infrastructure policy, fiscal federalism (Centre-State VGF split), and transport equity. For exam purposes, note the administering ministry (Civil Aviation), the funding instrument (VGF), the original launch year (2016), and the constitutional angle: civil aviation is a Union List subject (Entry 29, List I). Examiners frequently blank out the fare cap, launch year, or VGF mechanism to test precise recall.