Wednesday, August 26, 2020

India needs USD 50 billion investment to build airport assets over 2 decades: Report

Mumbai: India needs an estimated USD 50 billion in building airport assets over the next two decades to cater to demand, with the next five years expected to see significant investments in the airports sector, according to a report. By 2027, the number of domestic passengers is estimated to be around 500 million while the number of international passengers is expected to swell to 200 million by that time, according to a KPMG report on India's infrastructure sector.

Currently, there are 108 operational airports in the country, including 21 AAI-run international airports, seven international airports in joint ventures and one private state government-run international airport. The country also has 10 custom airports, 58 domestic airports and another 11 private/state government-run domestic airports, according to the AAI website.

"India needs over USD 50 billion in building assets to cater to the estimated demand over the next two decades. Our immediate need over the next five years is estimated to be USD 20 billion. Much of that investment will need to come from the private sector," the report, titled 'Catalysing the National Infrastructure Pipeline- Project India', said.

Private interest in developing large commercially viable assets has also allowed the government to focus on financing regional airport infrastructure with the intent of expanding regional air connectivity and supporting traffic growth at hub airports, it said.

Last week, the government green-signalled the leasing out of three airports - Jaipur, Guwahati and Thiruvananthapuram - through public-private partnership (PPP).
26/08/20 PTI/Economic Times
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