Airports Authority of India (AAI) will have to double its infrastructure spending to around Rs 4,000 crore a year over the next three years to expand capacity of at least half a dozen airports to handle the rapid passenger traffic growth seen in the first 10 months of the current fiscal, which is likely to be sustained in future also. The cash-rich company has been spending nearly Rs 2,000 crore annually to refurbish and augment airport capacity in the last three years but will now need to ramp it up to about Rs 12,000 crore over the next three years.
Cheaper crude has seen the aviation sector pick up momentum this fiscal with several tier-2 airports posting over 25% passenger traffic growth.
This has brought some, including those at Ahmedabad, Lucknow, Jaipur, Patna, Varanasi, Pune, Chandigarh and Visakhapatnam, near saturation capacity.
“We plan to invest around R6,200 crore in expansion and upgradation of the current airports in the next three to four years. We will be investing around R880 crore for expanding the Lucknow airport, around Rs 850 crore for Tiruchirappalli airport, around R2,000 crore for the Chennai airport, R900 crore for the Guwahati airport and around R300 crore for Leh, Srinagar and Dehradun,” Mahesh Sharma, minister of state for civil aviation, told FE.
25/03/16 Bilal Abdi and Sumit Jha/Financial Express
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Cheaper crude has seen the aviation sector pick up momentum this fiscal with several tier-2 airports posting over 25% passenger traffic growth.
This has brought some, including those at Ahmedabad, Lucknow, Jaipur, Patna, Varanasi, Pune, Chandigarh and Visakhapatnam, near saturation capacity.
“We plan to invest around R6,200 crore in expansion and upgradation of the current airports in the next three to four years. We will be investing around R880 crore for expanding the Lucknow airport, around Rs 850 crore for Tiruchirappalli airport, around R2,000 crore for the Chennai airport, R900 crore for the Guwahati airport and around R300 crore for Leh, Srinagar and Dehradun,” Mahesh Sharma, minister of state for civil aviation, told FE.
25/03/16 Bilal Abdi and Sumit Jha/Financial Express
