Over 90% of the targeted capital expenditure on airports by private operators as well as state-owned Airports Authority of India between financial year 2020 and 2025 has been achieved, says the Economic Survey.
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Over 90% of the targeted capital expenditure on airports by private operators as well as state-owned Airports Authority of India between financial year 2020 and 2025 has been achieved, says the Economic Survey.
“Airport operators and developers, including the Airports Authority of India, are pursuing a capital expenditure plan exceeding ₹91,000 crore from FY20 to FY25. About 91% of this has been achieved by November 2024,” as per the report tabled in Parliament on Friday (January 31, 2025).
Out of the total target, the AAI’s share is approximately ₹25,000 crore, while the remaining expenditure is to be borne by airport developers under PPP mode.
The Economic Survey underlined that private investment in infrastructure development was key.
“We need to ensure increasing private participation in infrastructure by improving their capacity to conceptualize projects and their confidence in risk and revenue-sharing mechanisms, contract management, conflict resolution and project closure. The efforts of the Union Government would need to be supplemented with wholehearted acceptance of the need for public-private partnerships in infrastructure across the country,” it said.
Under the PM Gati Shakti initiative, the government also aims to create a seamless multimodal connectivity network across the country so that the aviation sector is integrated with other modes of transport, such as railways, roads, and waterways.
In the area of maintenance, repair and overhaul (MRO) of aircraft, the Economic Survey said that the government is encouraging original equipment manufacturers to establish facilities in India and has introduced policies to align the sector with global standards.
Published – January 31, 2025 04:46 pm IST
