A new ₹480 crore terminal opens at Jodhpur airport
A ₹29,000 crore decade-long scheme targets building 100 new aerodromes and 200 helipads across underserved Indian towns.

The Essentials
- The Indian government has initiated the next 10-year phase of its regional air connectivity programme alongside a new terminal in Jodhpur.
- The scheme operates on a ₹29,000 crore budget to develop 100 aerodromes and 200 modern helipads over the next decade.
- Travellers from tier-2 and tier-3 cities will gain access to more direct flight routes using indigenous aircraft like the HAL Dhruv.
The Pulse
The modified UDAN scheme commits ₹29,000 crore over the next ten years to keep regional air travel affordable across India. This phase shifts focus from merely opening routes to aggressively building physical infrastructure in places airlines previously ignored. Out of the total budget, ₹12,159 crore goes directly toward upgrading 100 unserved airstrips into functional aerodromes.
For passengers wondering how regional ticket prices stay low, the scheme allocates ₹10,043 crore entirely to Viability Gap Funding. This mechanism subsidises airlines for flying half-empty planes on new routes, ensuring they do not pass the operational losses onto the ticket price. It is the core reason flights to remote tier-3 towns remain financially viable for commercial carriers.
Parallel to the nationwide programme, Jodhpur Airport just upgraded its capacity to handle 20 lakh passengers annually. The ₹480 crore terminal adds 20 check-in counters and six aerobridges, replacing a saturated older building that could only handle four lakh people. This expansion directly answers the surging tourism demand for western Rajasthan.
The Snapshot
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| Feature | Details |
| Scheme Outlay | ₹29,000 crore (10 years) |
| Aerodrome Development | 100 locations (₹12,159 crore) |
| Helipad Development | 200 locations (₹3,661 crore) |
| Viability Gap Funding | ₹10,043 crore |
| Jodhpur Terminal Cost | ₹480 crore |
| Jodhpur Annual Capacity | 20 lakh passengers |
| Jodhpur Peak Capacity | 1,500 passengers |
| Target Green Rating | 5-Star GRIHA |
The Big Picture
Since 2016, regional connectivity schemes have radically altered the domestic aviation market share. Major players like IndiGo and Air India Express previously concentrated almost entirely on metro routes due to guaranteed load factors. By injecting continuous Viability Gap Funding, the government forces commercial operators to look at regional routes as viable secondary revenue streams rather than charity operations. This latest capital injection signals that the state will continue absorbing the initial financial risk of operating in rural India until passenger demand matures organically.
The India Prospective
For frequent business travellers or tourists based in metros, this translates to fewer layovers when visiting tier-2 and tier-3 towns. The Jodhpur terminal upgrade specifically resolves a notorious bottleneck for Rajasthan tourism, offering an immediate bump in comfort with six new aerobridges and expanded check-in areas. The push for indigenous aircraft like the Dornier also means shorter, more frequent hops might gradually replace long overnight train journeys across the country.
The Inside Intel
The capacity upgrade at Jodhpur Airport is unusually steep for a single phase of construction. The original terminal was built to handle a maximum of four lakh passengers a year, a number it had already outgrown due to sustained traffic. The new facility expands that baseline capacity to 20 lakh passengers annually, anticipating massive regional growth rather than just solving the immediate traffic congestion problem.
The Unboxed Truth
Unbox Daily HQ considers this expansion a necessary structural shift that benefits every domestic traveller heading outside the metros. The continued subsidy ensures that smaller businesses and independent tourists will not be priced out of regional air travel over the next decade. The parallel Jodhpur terminal upgrade is worth the capital expense solely for eliminating the notorious peak-hour saturation that previously plagued western Rajasthan’s main air gateway.
Best for: Business travellers and tourists requiring direct access to tier-2 and tier-3 cities without metro layovers
Who Is This For: Perfect for 28 to 55-year-old professionals and domestic tourists in India who value time over transit costs and frequently travel to emerging regional hubs
The Checkout
Ministry of Civil Aviation – India Page
The Source
Ministry of Civil Aviation | PIB.GOV
The Query
What is the total budget allocation for the Modified UDAN Scheme in India?
The Modified UDAN Scheme has a total budget allocation of approximately ₹29,000 crore over the next ten years. Approved on 25 March 2026, the funding includes ₹12,159 crore for developing 100 regional aerodromes. This long-term financial commitment aims to keep regional air travel affordable across India.
How does the Modified UDAN Scheme change regional flight options compared to airlines like IndiGo and Air India Express?
Unlike standard commercial models where airlines like IndiGo and Air India Express focus on high-traffic metro routes, this scheme uses ₹10,043 crore in Viability Gap Funding to subsidise regional flights. It expands the network to 100 unserved airstrips and 200 modern helipads. This ensures regular connectivity to smaller towns without passing operational losses onto passengers.
Who will benefit the most from the Modified UDAN Scheme in India?
This expanded network is ideal for 28 to 55-year-old professionals and domestic tourists travelling frequently to regional hubs. The ₹29,000 crore funding provides immense value by keeping ticket prices subsidised and affordable. It directly eliminates time-consuming metro layovers for travellers heading to tier-2 and tier-3 cities.






