The Airports Authority of India (AAI) has planned to spend more than Rs 5,000 crore in the ongoing financial year to facilitate the growth of airlines adding more planes. This amount is set to exceed the previous year’s sum of Rs 5,125 crore, with most of the spending coming from internal sources. Post-Covid, there has been a notable increase in air traffic, and the capex will help ensure smooth operations while accommodating the surge in demand.
Most of the funds will be allocated to construct two Greenfield airports in Gujarat: Hirasar, Rajkot, and Dholera while also supporting ongoing projects that require state-of-the-art technology such as radar, satellite, and ATC towers.
AAI has been revamping 20 airports across the country, with most of the work expected to be completed by FY24 except for the expansionary plans in Vijayawada, Goa, Imphal, Patna, and Chennai Phase II, which will be completed by FY25.
According to an official source, this significant investment aims to transform the Indian aviation industry by enhancing passenger experience and increasing airport capacity. AAI’s sovereign function is air navigation services that require state-of-art technology and significant investments.
The officials cited a surge in air traffic post-Covid, which necessitated the capex, helping airlines meet the demand while enhancing the passenger experience. The capital expenditure will boost infrastructure growth across Indian airports, with new projects underway and ongoing ones set to take the forefront of airport activity while meeting the demands of the envisioned future growth.
