He will launch 'UDAN' (Ude Desh Ka Aam Nagrik), a regional air connectivity scheme, under which the fares of flights will be capped at Rs 2,500 per seat per hour.
Barricades have been erected on Mall Road, but it is not yet clear whether the prime minister would hold a road show or not.
Modi will also inaugurate the Hydro Engineering College. It is being set up by the government in collaboration with public enterprises like National Thermal Power Corporation Limited (NTPC) and NHPC at Bandla district, party sources said.
Nadda said the launch of UDAN and resumption of Air India flights from Shimla airport after a gap of five years would boost tourism and allied activities in the state.
Meanwhile, the Bharatiya Janata Yuva Morcha (BJYM) workers today took out a massive bike rally in the town to create awareness about the PM's visit.