Friday, February 25, 2022

Investments worth Rs 2.3 Trillion expected for new greenfield airports in India by 2030: Praxis Report

Greenfield airports are slated to witness significant growth in the Indian airport infrastructure market through 2030 with the investment opportunity of Rs 2.3T(trillion) between FY2023- 30 and about 150,000 acres of land for development, according to a recent report by Praxis Global Alliance, a global management consulting and advisory services firm. With the growing demand for airports, India needs an average additional 34 airports by 2025, and about 125 airports by 2030 to meet the 350-400M(million) additional passengers demand forecasted by 2030.

The report on 'Airport Infrastructure' by Praxis suggests the Indian airport infrastructure sector is expected to grow at a steady CAGR as the Covid-19 clouds clear and demand increases. The report has evaluated the future growth potential of the sector with a focus on public-private partnerships (PPP).

India's air travel demand had grown at an 11 percent CAGR over FY16-20, primarily driven by growth in domestic air travel. However, Covid-19 impacted airport business resulting in an 85 % decline in international travel and more than 60 % decline in domestic travel in FY21. However, with recovery in business activities and the desire to travel, the domestic air traffic has been showing green shoots of recovery since the beginning of the second quarter of 2021 compared to the 2020 levels, cites the report.

Incidentally, cargo has outperformed passenger business throughout the crisis and that trend is expected to continue for a few more years down the line. This puts the cargo business in positive territory compared to pre-crisis levels, cites the report. Freight traffic reportedly witnessed steady growth till FY20 and dropped by 27% due to Covid-19 in FY21. It is on the road to recovery in FY22 and is expected to get back to pre-Covid-19 levels in FY23 and is projected to grow at 7% CAGR between FY23-30.

A hypothesis put forward in the report highlights that a total projected passenger traffic is likely to reach 690 million by 2030 and freight traffic is likely to reach 5.8MMT(million metric tonnes) by 2030. This translates to a requirement of 34 greenfield airports needed by 2025 and about 125 greenfield airports needed by 2030 to meet this projected traffic demand.

25/02/22 ITLN

To Read the News in full at Source, Click the Headline


Post a Comment