India, the World ninth largest civil aviation market has been betting strongly to improve and expand the country’s aviation infrastructure to meet the demand of rising air passengers. The government has granted ‘in-principle’ approval to set up 14 Greenfield airports across the country; the civil aviation ministry has informed the parliament.
These Greenfield airports are; Mopa in Goa; Navi Mumbai, Shirdi and Sindhudurg in Maharashtra; Shimoga, Gulbarga, Hassan and Bijapur in Karnataka; Kannur in Kerala; Pakyong in Sikkim; Datia/Gwalior (Cargo) in Madhya Pradesh; Kushinagar in Uttar Pradesh; Karaikal in Puducherry; and Dholera in Gujarat.
Government has also laid down Route Dispersal Guidelines (RDG) of air transport services taking into account the need for air transport services of different regions of the country, said the ministry.
The government initiatives to make air travel viable for its people and its decision to make new Greenfield airports, would take Indian aviation to the next level. It is projected that India will be the third largest aviation market by 2020.
Recently, Ministry of civil Aviation proposed a subsidy to airlines by levying a 2% fee to reduce the cost of travel in non-metros routes and aiming to bring down the price nearly Rs 2,500 per flying hour under Regional Connectivity Scheme (RCS), which will surely boost the Indian aviation industry and make air travel feasible.
Last month government announced that it has decided to develop 25 regional airports in the country this year. By keeping future requirement of the domestic airports, government is working hard to invest in aviation infrastructure.
Government expects India aviation sector is expected to see investment around USD 12.1 billion during 2012-17, USD 9.3 billion alone expected to come from the private sector.
Above mention Greenfield airport, 50 airports under the low-cost model and some Brownfield airports of Airports Authority of India are to be developed across the country, including Public Private Partnership (PPP).
India has planned to increase 250 operational airports by 2030 in the country.
To bring the foreign investment in the Indian aviation sector, government has given various relaxations and exemptions like; 100% FDI has been permitted to develop Greenfield projects under automatic route, up to 74% FDI is permitted for existing airport projects under automatic route, above 74% and up to 100% permitted under government approval route.
In recent time, Indian domestic air passengers’ growth has jumped by leaps and bounds; during January-March 2016 period, domestic airlines have carried 230.03 lakh passengers against 185.46 lakh, during the same period of previous year, registered 24.03% growth.
During January-December -2015 domestic airlines had carried 810.91 lakh passengers against 673.83 lakh during same period in 2014, registered 20.34% growth in 2015 as compared to previous year.
The huge demand and supply for this sector will obliviously help the infrastructure growth of the country, such infra growth would help construction equipment sector of the country as this industry entirely depend on the infra development.
Source: Information has been obtained from Government press release, Makeinindia, The Indian Express and DGCA.