Saturday, October 07, 2017

Funding required for airport infrastructure to counter growing air traffic: ICRA

Amid growing air traffic, India would need to treble its airports capacity (terminal building capacity) at an estimated capital expenditure (CapEx) of Rs. 2.4 lakh crore in the next ten years, much higher than around Rs. 52,000 crores incurred over the last decade, credit-rating body ICRA opined.

The airports infrastructure sector in India is increasingly getting constrained by the strong growth in traffic since FY2014. During the period, FY2014 to FY2017, the passenger traffic has grown by 57 percent, while the aircraft traffic has grown by 33 percent, compared to moderate capacity addition.
As of now, CapEx plans to the tune of Rs. 65,000 crore have been finalised by the Airports Authority of India (AAI) (Rs. 17,500 crores for next five years) and by private operators (around Rs. 22,000 crores for brownfield expansion in Delhi, Mumbai, Hyderabad and Bangalore; and around Rs. 21,000 crores for Greenfield airports).

However, CapEx plans need to be ramped up significantly to build capacities for the anticipated level of passenger traffic, and apart from expediting execution, identifying funding sources would be important for the sector.
07/10/17 ANI/Economic Times