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Bihar Cabinet Approves ₹150 Crore MoU with AAI to Develop Six Regional Airports under UDAN Scheme.

MOUs and Agreement | Dated: 23 Jun 2025

On June 17, 2025, the Bihar state cabinet, chaired by Chief Minister Nitish Kumar, approved a ₹150 crore Memorandum of Understanding (MoU) with the Airports Authority of India (AAI) to build six new regional airports under the central government’s UDAN (Ude Desh ka Aam Nagrik) scheme, aimed at enhancing affordable regional air travel.

🎯 Key Highlights:

  • - The MoU encompasses six towns—Madhubani, Birpur (Supaul), Munger, Valmikinagar (West Champaran), Muzaffarpur, and Saharsa—with each airport estimated at approximately ₹25 crore. These sites were part of prior feasibility studies approved in April 2025, laying the groundwork for construction.
  • - This initiative aligns with India’s broader vision to add 120 new airports over the next decade under UDAN, expanding the network to serve rural and semi-urban regions and support up to 4 crore additional passengers.
  • - This expansion is expected to significantly benefit tourism (especially around Valmikinagar Tiger Reserve), enhance disaster response capabilities, stimulate local economies, and generate employment in underserved regions.

💡 Other Important Facts:

  • (i) Total funding of ₹150 crore has been earmarked for six airports, each receiving ₹25 crore. Additional state budget allocations, like ₹2.58 crore for river studies and ₹224 crore under the Housing for All scheme, reflect a broader infrastructure upgrade push.
  • (ii) AAI will spearhead construction and obtain land availability confirmation. The MoU sets up a framework for phased implementation, requiring close coordination with local administrations and periodic audits to ensure timely delivery.

📚 Test Your Knowledge:

Recently, which state cabinet approved a ₹150 crore MoU with AAI for developing six regional airports under the UDAN scheme?

Correct Answer: Bihar

🚀 Quick Recap:

About Bihar

  • Chief minister: Nitish Kumar
  • Governor: Arif Mohammad Khan