The Airports Authority of India (AAI) has announced an investment of $3.3bn (Rs250bn) to expand existing airports in the country and modernise them over the next four to five years.
This infusion will enable the creation of new terminals, as well as the expansion and overhaul of existing terminals.
It will also support the expansion or revamp of aprons, runways, control towers and airport navigation services (ANS).
The three public-private partnership (PPP) airports located in Delhi, Hyderabad and Bengaluru cities will invest $3.9bn (Rs300bn) for expansion work by 2025.
Under the public-private partnership (PPP) mode, $4.7bn (Rs360bn) has been allocated for the development of new Greenfield airports in India.
The government has already given in-principle approval for establishing 21 Greenfield airports across the country.
Of these 21 airports, eight airports have been operationalised across various cities.
As part of the governments Regional Connectivity Scheme (RCS), 393 routes became operational, connecting India’s 62 unserved and underserved airports. This includes two water aerodromes and six heliports.
The government is also enhancing air navigation infrastructure at the country’s airports. Freighter aircraft deployed by Indian carriers have grown from 7 in 2018 to 28 in 2021.
The Minister of State in the Ministry Of Civil Aviation (General (Retired)) Dr V K Singh said that goods and services tax (GST) has been reduced from 18% to 5% for domestic maintenance, repair and overhaul (MRO) services.
Furthermore, the government has created a provision for 100% foreign direct investment (FDI) at the greenfield and existing airport projects.