India To Construct 100 Airports For $60 Billion (about Rs. 4.2 lakh crore):
India is in planning to build 100 new airports through a public-private partnership, the civil aviation minister said. Suresh Prabhu said as the Indian government is working on a cargo policy,
India plans to construct 100 airports at a projected cost of $60 billion (about Rs. 4.2 lakh crore) in the next 10 to 15 years. India’s aviation sector is one of the rapidly growing in the world and has recorded 50 months of double-digit traffic growth. Nearly 100 new airports would be built in the next 10 to 15 years for about $60 billion. These airports are to be constructed through a public-private partnership.
In line with global airlines’ group International Air Transport Association (IATA), India is supposed to overtake Germany, Japan, Spain, and the UK within the next 10 years to become the world’s third largest air passenger market. Among the country’s domestic aviation sector recording double-digit growth for more than three years on the back of rising demand, the government is working on policies to reinforce the infrastructure for the sector. Currently, the Airports Authority of India (AAI) is operating more than 120 aerodromes.
“We plan to put it in the public domain for anyone interested in building infrastructure or airports will get an advanced intimation on where it is going to happen. Our strategy is clear. We have to do it in a PPP mode. We need to have private sector participation,” Prabhu said. The government plans to have a calculated tariff structure linked to expansion for greenfield airports.
Presently, there is a cost plus tariff composition wherein the rates for an airport are determined every five years, which is known as the concession period. Against the backdrop of the government introducing a new tariff structure for greenfield airports, the International Air Transport Association (IATA) has raised concerns about it. The IATA is a global grouping of more than 280 airlines.
The IATA has predicted that by 2037, there would be almost 520 million passengers flying to, from and within India each year.
“In 2010, 79 million people traveled to/ from/ or within India. By 2017 that doubled to 158 million. That number is expected to treble to 520 million by 2037,” it noted.
The country is also expected to overtake Germany, Japan, Spain, and the UK within the next ten years to become the world’s third largest air passenger market.