Wednesday, June 07, 2017

Major airports across India set for Rs 2,400 cr makeover in FY18; Rs 400 cr set aside for UDAN

The Airports Authority of India (AAI) will spend Rs 2,000 crore to develop and expand major airports across the country in FY 18. In addition Rs 300-400 crore will be spent by the state run entity to develop airports under the UDAN or the regional connectivity scheme, according to two official in the ministry of civil aviation. Meanwhile, the ministry of civil aviation (MoCA) is tweaking the regional connectivity scheme — before the second round of bidding — to make it more friendly for both investors and business people. To begin with, routes of less than 150 kilometre distance will be included. Operators will be given exclusive rights to fly on the commercially lucrative routes and there will be added benefits for airlines operating on the routes in smaller towns and backward regions. MoCA is keeping track of the airlines who have bid successfully for regional routes and is confident they will start operations before September. AAI has zeroed in on 43 airports where work has started. Officials in MoCA said there are 25 airports that require investments of around Rs 10 crore each and six airports where the investments would be around Rs 100 crore each. Development typically begins once the routes have been bid out. In March, the union cabinet approved R4,500 crore for development of small airports across the country.
07/06/17 Malyaban Ghosh/Financial Express