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GoI Policy Tracker

Modified UDAN gets ₹29,000 crore for regional air connectivity

July 5, 2026 5 mins read Firehose Gupta

EXECUTIVE SUMMARY:

Semiconductor plant starts commercial chip packaging in Gujarat
CG Semi’s OSAT facility in Sanand has begun commercial production, adding to India’s growing chip-manufacturing base. The government says more semiconductor plants are expected to start operating by end-2026, which could strengthen supply chains for electronics and autos.

Government launches next phase of regional air connectivity funding
The Cabinet-approved “Modified UDAN” scheme is set to run for 10 years with about ₹29,000 crore, including money for new aerodromes, helipads, and support to keep regional airlines viable. This is meant to expand air access beyond major cities and boost tourism and local business.

Onion buffer procurement price raised to ₹2,125 per quintal
The government increased the onion procurement price for its price-stabilisation buffer by 13%, effective 4 July 2026. Higher procurement rates are intended to improve returns for farmers while ensuring the buffer can be built to manage retail prices.

New drug-demand plan launched; treatment seekers rise sharply
The government rolled out the National Action Plan for Drug Demand Reduction, alongside the Nasha Mukt Bharat campaign. It also highlighted a large jump in people seeking de-addiction and rehabilitation services and expanded helpline and app-based support.

Academic credits system expands via ABC and APAAR IDs
The education credit system (Academic Bank of Credits) and the student ID (APAAR) are being scaled, with tens of millions of verified IDs already created. The government says this will make it easier to transfer credits across institutions and support “multiple entry-exit” learning.

Government designates 23 more people as terrorists under UAPA
The Home Ministry added 23 individuals to the list of terrorists under the Unlawful Activities (Prevention) Act. This signals continued tightening of counter-terror measures, including targeting alleged funding and recruitment networks.

Jodhpur gets a new airport terminal; Jaipur Metro Phase-2 foundation laid
In Rajasthan, the government inaugurated a new Jodhpur airport terminal and announced metro expansion via Jaipur Metro Phase-2. It also tied these projects to jobs, tourism, and improved connectivity, alongside other large infrastructure work in the region.

DETAILED NOTES:

Semiconductor plant starts commercial chip packaging in Gujarat

What happened:
* CG Semi’s OSAT (outsourced assembly and test) facility in Sanand, Gujarat, has started commercial production.
* The government says this is the third semiconductor plant in India to begin commercial operations this year, and that five plants are expected to be operational by end-2026.
* The project is described as part of a broader push to build an end-to-end semiconductor ecosystem (design to packaging), with chips aimed at domestic use and exports.

Why it matters:
* Commercial packaging capacity is a key step in turning semiconductor investments into real output for electronics supply chains.
* More operational plants by late 2026 could reduce India’s dependence on imported chips and support growth in electronics, autos, and industrial equipment.

Government launches next phase of regional air connectivity funding

What happened:
* The next phase of UDAN (“Viksit UDAN”) was launched, building on the earlier UDAN scheme.
* The Cabinet has approved the Modified UDAN Scheme for about ₹29,000 crore over 10 years.
* Funding includes: ₹12,159 crore for developing 100 aerodromes, ₹2,577 crore for operations and maintenance, ₹3,661 crore for 200 helipads, and ₹10,043 crore as viability gap funding to sustain regional airlines.

Why it matters:
* More funded regional airports and helipads can lower barriers for travel from smaller cities, which can help tourism and business.
* Viability gap funding is designed to keep regional routes running—important for investors and airlines planning long-term network expansion.

Onion buffer procurement price raised to ₹2,125 per quintal

What happened:
* The government raised the onion procurement price for the Price Stabilisation Buffer from ₹1,875 to ₹2,125 per quintal (up 13%).
* The revised rate is effective from 4 July 2026, with procurement through NAFED and NCCF underway.
* The release says onion availability is currently not a concern, but prices may rise with normal seasonal patterns.

Why it matters:
* Higher procurement prices can improve farmer earnings and make it easier to build buffer stocks.
* A stronger buffer can help prevent sharp retail price spikes later in the season, affecting household food budgets.

New drug-demand plan launched; treatment seekers rise sharply

What happened:
* The Ministry of Social Justice and Empowerment launched the National Action Plan for Drug Demand Reduction (NAPDDR).
* It also highlighted the Nasha Mukt Bharat Abhiyaan (launched earlier) as part of the same push.
* The government says de-addiction and rehabilitation centres have expanded, and the number of people seeking treatment rose from 2.08 lakh (2020) to over 8.20 lakh (2025).

Why it matters:
* This is a policy signal that the government is prioritising prevention, treatment, rehabilitation, and reintegration—not just enforcement.
* Expanded services and a toll-free helpline/app support can affect families directly, especially in areas with limited access to care.

Academic credits system expands via ABC and APAAR IDs

What happened:
* The government’s education credit system (Academic Bank of Credits) is regulated by the UGC and linked to APAAR, a unique student ID.
* As of 2 July 2026, it says 26.35 crore verified APAAR IDs have been generated.
* The system is meant to store and transfer academic credits across recognised institutions, supporting multiple entry and exit options.

Why it matters:
* For students, this can reduce the “loss of progress” when switching colleges or rejoining later.
* For universities and training providers, it creates a more standardised way to recognise and move credits—potentially improving mobility and employability pathways.

Government designates 23 more people as terrorists under UAPA

What happened:
* The Home Ministry designated 23 additional individuals as terrorists under UAPA (Unlawful Activities Prevention Act).
* The release says 17 are Pakistani nationals and 6 are Indian nationals, and that they are alleged to be operating from Pakistan and Pakistan-occupied Jammu & Kashmir.
* The government links the move to disrupting terror funding, movement, recruitment, and related activities.

Why it matters:
* This can lead to stronger legal and enforcement action against networks the government considers terrorist-linked.
* It also affects risk assessments for businesses and institutions operating in sensitive regions, and shapes the security environment for investment and travel.

Jodhpur gets a new airport terminal; Jaipur Metro Phase-2 foundation laid

What happened:
* A new terminal building at Jodhpur Airport was inaugurated, with the government citing improved capacity and passenger facilities.
* Jaipur Metro Phase-2 was also announced as a major expansion step.
* The government framed these as part of a broader ₹1.06 lakh crore set of development projects in Balotra and across Rajasthan.

Why it matters:
* Better airport and metro capacity can improve connectivity for tourism and trade, and support job creation in construction and services.
* For businesses, improved transport links can reduce logistics friction and make regional markets more accessible.