He will flag off a flight on Shimla-Delhi sector as also on Kadapa-Hyderabad and the Nanded-Hyderabad sectors, the PMO said today.
Modi will launch the scheme from Shimla.
UDAN ('Ude Desh ka Aam Naagrik') is a first-of-its-kind scheme globally to stimulate regional connectivity through a market-based mechanism, the PMO said in a tweet.
"To make air travel accessible to citizens in regionally important areas, the 'Ude Desh ka Aam Naagrik' RCS (regional connectivity scheme) was launched in October, 2016," it added.
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"Airfare for a 1-hour journey of appx. 500 km on a fixed wing aircraft or for 30 minute journey on a helicopter would be capped at Rs. 2,500," the PMO said.
"This with proportionate pricing for routes of different stage lengths and flight duration," it said.
While in Shimla, the Prime Minister also address a rally at the historic Ridge Maidan.
This will be his first visit to Shimla after becoming the Prime Minister. He had visited the capital of Himachal Pradesh last in 2003 when he was the Chief Minister of Gujarat.
Modi was in-charge of organisational affairs of Himachal Pradesh for eight years till 2002.