Airport Authority to spend Rs 25,000 cr on existing, new terminals in next five years
Delhi, Hyderabad and Bengaluru airports -- all public private partnerships airports -- have undertaken expansion plans to the tune of Rs 30,000 crore by 2025.
- Dec 6, 2021,
- Updated Dec 6, 2021 4:14 PM IST
The Ministry of Civil Aviation said that the Airport Authority has taken up a development scheme wherein it will spend Rs 25,000 crore for expansion and modification of existing terminals. Delhi, Hyderabad and Bengaluru airports -- all public private partnerships airports -- have undertaken expansion plans to the tune of Rs 30,000 crore by 2025. Moreover Rs 36,000 crore have been planned for investment in the development of new greenfield airports across the country
“Airports Authority of India (AAI) has taken up a development programme to spend around INR 25,000 crores in next five years for expansion and modification of existing terminals, new terminals, expansion or strengthening of existing runways, aprons, Airport Navigation Services (ANS), control towers, technical blocks etc,” stated the ministry in the Rajya Sabha on Monday.
The government has given in-principle approval for 21 greenfield airports across the country. So far, Shirdi in Maharashtra, Durgapur in West Bengal, Pakyong in Sikkim, Kannur in Kerala, Orvakal in Andhra Pradesh, Kalaburagi in Karnataka, Sindhudurg in Maharashtra and Kushinagar in Uttar Pradesh have been operationalised.
The ministry stated that the GST rate for domestic maintenance, repair and overhaul services has been reduced from 18 per cent to 5 per cent.
These developments come amid the impact of the pandemic on the aviation sector. Airlines and airports are expected to have incurred losses of approximately Rs.19,564 crore and Rs. 5,116 crore respectively in the financial year 2020-21.
The aforementioned spend comes as the government is aiming to revive the aviation sector. Under the Ude Desh ka Aam Nagrik (UDAN) scheme, 393 routes have commenced connecting 62 unserved and underserved airports, including two water aerodromes and six heliports, as on November 24.
Freighter aircraft have also increased from 7 in 2018 to 28 in 2021, increasing the share of Indian carriers in international freighter movements from 2 per cent to 19 per cent.
Moreover, Rs 2,062 crore have been approved for the revival of unserved and underserved airports/heliports/waterdromes. Seaplane operations from water aerodromes under UDAN have also been introduced.
A total of 14 water aerodromes have been identified with 28 seaplane routes:
- 1. Sardar Sarovar Dam (Statue of Unity), Gujarat
- 2. Sabarmati Riverfront, Ahmedabad
- 3. Shatrunjay Dam, Gujarat
- 4. Swaraj Dweep, Andaman & Nicobar Islands
- 5. Havelock Island, Andaman & Nicobar Islands
- 6. Shaheed Dweep (Neill Island), Andaman & Nicobar Islands
- 7. Guwahati Riverfront, Assam
- 8. Umrangso Reservoir, Assam
- 9. Nagarjuna Sagar Dam, Telangana
- 10. Prakasam Barrage, Andhra Pradesh
- 11. Minicoy, Lakshadweep Islands
- 12. Kavaratti, Lakshadweep Islands
- 13. Port Blair, Andaman & Nicobar Islands
- 14. Agatti, Lakshadweep Islands
Also read: Here's why experts don't think Omicron will impact India's aviation sector Also read: Air India transfer to be completed in 1-1.5 months: Scindia
The Ministry of Civil Aviation said that the Airport Authority has taken up a development scheme wherein it will spend Rs 25,000 crore for expansion and modification of existing terminals. Delhi, Hyderabad and Bengaluru airports -- all public private partnerships airports -- have undertaken expansion plans to the tune of Rs 30,000 crore by 2025. Moreover Rs 36,000 crore have been planned for investment in the development of new greenfield airports across the country
“Airports Authority of India (AAI) has taken up a development programme to spend around INR 25,000 crores in next five years for expansion and modification of existing terminals, new terminals, expansion or strengthening of existing runways, aprons, Airport Navigation Services (ANS), control towers, technical blocks etc,” stated the ministry in the Rajya Sabha on Monday.
The government has given in-principle approval for 21 greenfield airports across the country. So far, Shirdi in Maharashtra, Durgapur in West Bengal, Pakyong in Sikkim, Kannur in Kerala, Orvakal in Andhra Pradesh, Kalaburagi in Karnataka, Sindhudurg in Maharashtra and Kushinagar in Uttar Pradesh have been operationalised.
The ministry stated that the GST rate for domestic maintenance, repair and overhaul services has been reduced from 18 per cent to 5 per cent.
These developments come amid the impact of the pandemic on the aviation sector. Airlines and airports are expected to have incurred losses of approximately Rs.19,564 crore and Rs. 5,116 crore respectively in the financial year 2020-21.
The aforementioned spend comes as the government is aiming to revive the aviation sector. Under the Ude Desh ka Aam Nagrik (UDAN) scheme, 393 routes have commenced connecting 62 unserved and underserved airports, including two water aerodromes and six heliports, as on November 24.
Freighter aircraft have also increased from 7 in 2018 to 28 in 2021, increasing the share of Indian carriers in international freighter movements from 2 per cent to 19 per cent.
Moreover, Rs 2,062 crore have been approved for the revival of unserved and underserved airports/heliports/waterdromes. Seaplane operations from water aerodromes under UDAN have also been introduced.
A total of 14 water aerodromes have been identified with 28 seaplane routes:
- 1. Sardar Sarovar Dam (Statue of Unity), Gujarat
- 2. Sabarmati Riverfront, Ahmedabad
- 3. Shatrunjay Dam, Gujarat
- 4. Swaraj Dweep, Andaman & Nicobar Islands
- 5. Havelock Island, Andaman & Nicobar Islands
- 6. Shaheed Dweep (Neill Island), Andaman & Nicobar Islands
- 7. Guwahati Riverfront, Assam
- 8. Umrangso Reservoir, Assam
- 9. Nagarjuna Sagar Dam, Telangana
- 10. Prakasam Barrage, Andhra Pradesh
- 11. Minicoy, Lakshadweep Islands
- 12. Kavaratti, Lakshadweep Islands
- 13. Port Blair, Andaman & Nicobar Islands
- 14. Agatti, Lakshadweep Islands
Also read: Here's why experts don't think Omicron will impact India's aviation sector Also read: Air India transfer to be completed in 1-1.5 months: Scindia