The Union Cabinet has approved UDAN 2.0, paving the way for new airports at Adilabad in Telangana and Nagarjuna Sagar in Andhra Pradesh, the Union Civil Aviation Minister said. The scheme will enable upgrading existing airstrips into full airports and is intended to strengthen regional connectivity across both states and link tier-two cities with major centres. It will also facilitate flight services from Kurnool and Kadapa to Delhi and other major cities.

The Centre has allocated Rs 120 billion (bn) to develop 100 airports and Rs 35 bn for construction of 200 heliports under the programme. In addition, Rs 100 bn has been earmarked as viability gap funding to support airline operations and improve services to underserved regions. The funding plan is intended to accelerate infrastructure work and encourage carriers to add routes that are currently uneconomic.

The minister clarified that the government will not take over the Air Force airstrip at Adilabad but will acquire additional land to build a new civil airport nearby. He also indicated that there was no objection to constructing a vehicular tunnel beneath the Begumpet runway if the state government meets the cost, allowing existing infrastructure to remain operational while upgrades proceed.

The minister reported that the new facility at Bhogapuram and the expanded Vijayawada airport are expected to be operational by June. The Mamunoor project near Warangal is under inter-ministerial review, with plans to lay a foundation stone by June, subject to clearances. Sites earlier identified for Kothagudem and Basanth Nagar were found unsuitable and alternative locations are under consideration.

He added that Embraer is likely to take a decision within two to three months on establishing an aircraft manufacturing facility in India and aims to complete its first India-made aircraft by the end of 2028. The announcement is expected to stimulate local manufacturing and create supply chain opportunities for ancillary industries.