Capex Plan of Rs.98,000 crore for development, upgradation and modernisation of Airports: Govt

National (09/02/2023): India is one of the fastest growing aviation markets in the world and is already the third largest domestic aviation market.

The Government is proactively supporting the aviation sector by providing a stable policy environment and incentivising competition led growth.  In 2016, the Government released the National Civil Aviation Policy (NCAP 2016), which laid out the vision, mission and key objectives for the sector. The Government announced new MRO guidelines on 1st September, 2021 with a view to create a congenial atmosphere in the country for the development of the MRO industry for aircraft/ helicopters/ drones and their engines and other parts. These guidelines inter-alia provide for the allotment of land at Airports Authority of India (AAI) airports through call of open tenders without levy of any royalty or cess of whatsoever nature to MRO operators. Similarly, liberalised Flying Training Organisation (FTO) guidelines have been approved wherein the concept of airport royalty (revenue share payment by FTOs to AAI) has been abolished and land rentals have been significantly rationalised to encourage setting up of FTOs to address the shortage of pilots in the country. The Government has also formulated Helicopter Operation Policy to encourage helicopter operations creating demand and growth.

At present, there are 30 international airports in the country. The Ministry of Civil Aviation regularly interacts with the scheduled airline operators with an aim to promote air connectivity, including to various tourist destinations.

Government of India has accorded ‘in-principle’ approval for setting up of international Greenfield Airports namely, Bhogapuram in Andhra Pradesh, Dholera and Hirasar in Gujarat, Navi Mumbai in Maharashtra and Noida (Jewar) in Uttar Pradesh.

The upgradation of infrastructures/facilities at airports is a continuous process, which is undertaken by the AAI or the concerned Airport Operators depending upon operational requirements, traffic, demand, commercial feasibility etc. Moreover, Ministry of Civil Aviation launched Regional Connectivity Scheme (RCS) – UDAN (UdeDeshkaAamNagarik) on 21-10-2016 to stimulate regional air connectivity and make air travel affordable for the masses. Besides, both AAI and other PPP Airport Operators have embarked upon a Capex Plan for more than Rs.98,000 crore including around Rs.25,000 crore by AAI during 2019-24 for development /upgradation/modernisation of various brownfield airports and developing Greenfield Airports to meet the passenger growth and make air travel safer, comfortable and customer friendly.

This information was given by the Minister of State in the Ministry of Civil Aviation Gen.(Dr) V. K. Singh,(Retd) in a written reply to a question in Lok Sabha today.