Among the fastest growing businesses in the world, India’s airport operations have progressed to become the third-largest domestic civil aviation industry in the world, with substantial growth potential. In recent years, the Indian airport industry has experienced a sharp rise in investment from both the public and private sectors. To keep pace with this rapid expansion, additional investment in new airports, as well as the development of current airport infrastructure, is required in pursuance of future growth. The National Infrastructure Pipeline (NIP), which was unveiled in August 2020, has a lofty investment goal of Rs 111 trillion and will be completed by 2025, according to the government.
National Infrastructure Pipeline
For fiscal years 2020-25, the NIP proposes a capital expenditure of Rs 1.43 trillion to enhance passenger handling capacity. A number of projects, including the construction of new terminals, runways, taxiways and parking facilities, are now being executed to achieve this goal. Many airports are being developed as a result of the Regional Connectivity Scheme – Ude Desh Ka Aam Nagrik (RCS-UDAN), and terminal buildings are being expanded to increase amenities and passenger handling capacity.
The centre and state governments are expected to spend a total of Rs 1,434.48 billion between fiscal year 2020 and fiscal year 2025 under the NIP. The Centre will be responsible for the execution of about 58 projects that have been authorised. These projects are expected to need a capital investment of Rs 891.67 billion in terms of capital expenditure. Of these 58 projects 52, with a total cost of Rs 371.88 billion, will be implemented using the engineering, procurement and construction method, while six projects with a total cost of Rs 519.8 billion will be completed using the public-private partnership (PPP) approach. The eight entirely greenfield projects would incur a total capital expenditure of Rs 361.47 billion between fiscal years 2020 and 2025.
New airports being built at Navi Mumbai, Mopa (Goa), Jewar, Itanagar, Bhogapuram, Dholera (Gujarat), Agatti and Rajkot are among the projects that are entirely greenfield in nature. A number of existing airports, notably those in Chennai and Trichy, are receiving upgrades and modernisation, while expansion work is also ongoing at the international airports of Delhi and Bengaluru.