FCC

AAI to spend Rs 250 bn for airport infra upgradation

2019-08-19

In order to improve the infrastructure facilities at the airports, the Airports Authority of India (AAI) has significantly raised capital expenditure for airports under its control.

For the next privatisation round, the AAI is specifically looking at airports having significant increase in traffic but having insufficient infrastructure to match such growth. The authority is studying around 10 airports that it intends to bring under the public private partnership (PPP) model.

The AAI wants to deploy more resources to develop airports in unserved areas while maximising revenues from well-served units under the PPP model. In 2018-19, the authority had set aside Rs 41 billion for capital expenditure.

Terminal building projects worth more than Rs 100 billion are underway, being expected to be complete by the end of 2021. The value of the ongoing projects for airside development is around Rs 15 billion. For the FY20-24 period, a total of Rs 250 billion would be spent on expansion of existing airports, revival of non-operational airports, and upgrade of air navigation systems and telecommunication infrastructure, according to AAI.