New and existing airports to be developed with a projected capital expenditure of Rs. 25,000 crores in next five years
- Press Information Bureau
- March 15, 2022
The government has taken a number of measures to accommodate future demand in the aviation sector, including the following:
- In the next five years, the AAI plans to invest roughly Rs. 25,000 crores (US$ 3.36 billion) in the construction of new and existing airports.
- By 2025, the PPP airports in Delhi, Hyderabad, and Bengaluru would have completed major expansion projects of over Rs. 30,000 crores (US$ 3.91 billion). In addition, Rs. 36,000 crores (US$ 4.7 billion) has been set aside for the building of new greenfield airports around the nation through a public-private partnership (PPP).
- The government has given its 'in principle' clearance for the construction of 21 new airports around the nation. There are total eight Greenfield airports that have been operationalized so far.
- As of March 8th, 2022, 405 routes linking 65 airports (including 8 heliports and 2 water aerodromes) have been operationalized under the Regional Connectivity Scheme (RCS) - UdeDeshkaAamNagrik (UDAN).
- For home Maintenance, Repair, and Overhaul (MRO) services, the GST rate has been decreased from 18% to 5%.
- A favourable lease and financing environment for aeroplanes has been created.
- The airlines' domestic capacity has been restored to full capacity, as it was prior to the Covid era.
- At Indian airports, work is being done to improve the air navigation infrastructure.
- The number of cargo aircraft operated by Indian airlines has climbed from seven in 2018 to twenty-eight in 2021. As a result, during the previous two years, Indian airlines' share of international freighter movements has climbed from 2% to 19%.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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