Maharashtra Becomes Second-Highest Recipient Of UDAN Subsidies, Gets Over ₹632 Crore VGF

Mumbai: Maharashtra has emerged as the second-largest beneficiary of the Centre's flagship regional connectivity scheme – UDAN – securing more than Rs 632 crore in viability gap funding (VGF) to power air links to its underserved and unserved regions. The state followed Karnataka, which stood the highest gainer at Rs 823 crore until June 2026.

Official data from the Ministry of Civil Aviation revealed that Maharashtra received Rs 632.29 crore in VGF disbursements as of June 30. The substantial allocation to Maharashtra highlights the heavy capital and operational push required to integrate key interior tier-2 and tier-3 locations, such as Nashik’s Ozar, Sindhudurg’s Chhipi, Jalgaon, Kolhapur, Solapur and Amravati, into the national aviation network.

Karnataka topped the national tally at Rs 823.73 crore. The ministry's data highlighted a strong emphasis on boosting connectivity in western, southern, and northern regional corridors, with Uttar Pradesh earning over Rs 523 crore, while Rajasthan and Gujarat earned over Rs 282 crore and Rs 220 crore, respectively.

According to the ministry, the union government has developed and operationalised 95 airports, 17 heliports and two water aerodromes under the UDAN framework. Simultaneously, about 188 UDAN routes have been operationalised across the country during the last three financial years.

The modified UDAN scheme, recently launched by the ministry, has been extended till 2036 with the aim of upgrading 100 unserved airstrips into full-fledged airports. Simultaneously, 200 modern helipads will be constructed at an investment of Rs 3,661 crore over eight years, with an estimated budget of Rs 15 crore per helipad. It will also provide VGF support to airline operators worth Rs 10,043 crore over 10 years, up from the earlier 3 years.

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It will also procure indigenous aircraft, including two units each of HAL Dhruv helicopters and HAL Dornier aircraft for regional and difficult-terrain operations. The budget also includes funds for operations and maintenance support worth Rs2,577 crore for around 441 aerodromes, with three years of support and capped annual costs. The new scheme aims to connect 120 new destinations, serving 4 crore people over 10 years.

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