With an intent to step up investments in capacity expansion of airport infrastructure in the country, the Airports Authority of India(AAI) has decided to raise $300 million through External Commercial Borrowing (ECB) route next year as part of the proposed five-year outlay with Rs 25,000 crore starting this year. The AAI board has already approved the move, according to its chairman Arvind Singh.
The airport authority aims to spend a minimum of Rs 5,000 crore each year on the infrastructure in line with the government’s announcement that 100 new airports will be developed in five years in addition to the 48 airports newly operationalised in the past four years.
“Once these projects are completed the passenger capacity of the AAI-run airports will grow more than double to 700-750 million as compared to 350 million passenger capacity as we go for expansion, up-gradation and greenfield development,” Arvind Singh said on the sidelines of Wings India summit here on Friday.
The capex on airport infrastructure was supposed to be in the range of around Rs 4,000 crore last year as compared to around 2,500 crores in 2017-18 while the AAI’s current capex goal would further see a 20 percent increase in investment into this crucial sector.
“Just as the high passenger traffic growth has helped to fasten the growth of airports in the past, the pace of momentum in capacity addition is going to continue on the back of growing demand partly helped by the connectivity to Tier-II and Tier-III cities,” Sing said.