Govt to Fund $10B in Next 5 Years on Airport Infrastructure

With a desire to become world’s third largest aviation, Indian government has decided to spend approximately $10 billion in next five years to develop several airport infrastructures, confirmed RN Choubey, Civil Aviation Secretary.

At India Aviation Summit, he expressed that India needs to stay ahead of curve by maintaining 23 per cent aviation growth rate which is way higher than China’s growth rate of 14 per cent. The plan also includes utilizing 400 unused airstrips across the country.

“For the first time, the civil aviation sector has achieved rail parity. While the railways turnover is Rs 1.6 lakh crore, civil aviation turnover touched Rs 1.4 lakh crore and the number of rail and air passengers has also become almost equal,” says Choubey.

In his further speech, he agrees that the popularity of air travelling is on top and this is the right time for government to take the flights to the masses for which they have already come up with a progressive policy. Since airfare is almost comparable to air-conditioned train fares the government has been extending 50-60 per cent viability gap funding, which is created due to subsidy, under RAC (Reservation after Cancellation) scheme.

Source: ET Realty


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