INDIA NEEDS $40 BN FOR DEVELOPING AIRPORTS

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INDIA NEEDS $40 BN FOR DEVELOPING AIRPORTS

 

India will require $40 billion (over Rs 2 lakh crore at a rate of Rs 55 to a dollar) in developing its airports by 2025 to meet the needs of its growing air passenger traffic, Centre for Asia Pacific Aviation (CAPA) has said In its report.

 
India will require $40 billion (over Rs 2 lakh crore at a rate of Rs 55 to a dollar) in developing its airports by 2025 to meet the needs of its growing air passenger traffic, Centre for Asia Pacific Aviation (CAPA) has said In its report.
At present, India has 93 operational airports, including six airports run by private operators. There are plans to build three greenfield airports in Goa, Mumbai and Pune.
To increase air connectivity in smaller towns of the country, the government is also planning to subsidise operations by airlines in non-profit making routes connecting smaller cities through the creation of a fund called Essential Air Services Fund or EASF_
CAPA’s projections show that airport passenger traffic will grow from 143 million in 2010-11 to 452 million by 2020-21. Over the same period the scheduled airline fleet is expected to grow from 430 to 1,030 aircraft, while general aviation could see even faster growth from 750 to over 2,000 aircraft. CAPA has projected basing it on a gross domestic product growth of 8 per cent per annum.
Though the domestic passenger, which has seen double-digits growth in the last two years, but has witnessed a fall in the last three months, the aviation think tank has oi the view that the recent slowdown is a short-term phenomenon.
Analysts say the decline is on the fall in capacity of Kingfisher Airlines (which dropped from being the second largest carrier in terms of passengers flown to the lowest in July) and rise in fares that has increased by over 25 per cent.
The Centre for Asia Pacific Aviation report also mentions that going ahead avallabiitty of land will become a major challenge for the implementation of road projects in India,
“McKinsey estimates that India’s urban population will grow from 20 per cent of the total in 1991 to 37 per cent by 2025. By 2030 India is expected to have 55 cities with a population of than one million. Airports have massive land requirements and will have to fight with other users of land, for what will be an increasingly expensive asset.’ the latest report says

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