The scheme was initially up to the 2015-16 fiscal, ending this month-end.
The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.
Udaan provides exposure to the youth of J&K to corporate India and corporate India to the talent pool available in the state, said an official release.
So far, 67 leading corporates have partnered with National Skill Development Corporation (NSDC) under UDAAN with a commitment to train youth from the state covering organized retail, banking, financial services, IT, ITES, infrastructure, hospitality etc.
More From This Section
"It is expected that the target of the scheme to train and enhance employability of 40,000 graduates, post graduates and three year engineering diploma holders, will be achieved by 2019-20," an official statement said.
To accelerate the pace of implementation, mega selection drives have been introduced, in which around 8-10 corporates participate. It has significantly improved the number of selections. 67 mega selection drives have been held so far covering all districts of the state.