Jul 1 2016 | Focus


As the country gears up under the dynamic leadership of Prime Minister Narendra Modi towards strengthening the economy and making India one of the biggest trading and tourist hub of the world. The Civil Aviation Policy 2016 was recently announced. The focus has now shifted on the development of the Aviation sector starting with establishing new airports and modernising the existing ones across the length and breadth of the country. The untapped potential of these growth centres are worth billions. Delhi Airport alone has contributed 0.45% to the national GDP in FY2009-10. The recently announced Civil Aviation Policy 2016 is a step in the right direction. Sandeep Sharma takes a look at the available project opportunities in the Aviation sector….

Airports Authority of India (AAI) is the agency responsible for creating, upgrading, maintaining and managing civil aviation infrastructure in the country. The authority manages a total of 125 Airports, which include 11 International Airports, 8 Customs Airports, 81 Domestic Airports and 25 Civil Enclaves at Defence Airfields. AAI also provides Air Traffic Management Services (ATMS) over entire Indian Airspace and adjoining oceanic areas with ground installations at all Airports and 25 other locations to ensure safety of Aircraft operations.

The Government of India is keen to boost air connectivity in the country by way of establishing new airports and reviving the existing ones. Around 25 regional airports are proposed to be developed in the current fiscal. Government of India (GoI) has earlier granted 'in-principle' approval for setting up of 14 Greenfield airports namely, 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.

Airports Authority of India (AAI) plans to invest Rs 15,000 crore over the next four years in the development and upgradation of airports. Out of this, around Rs 2,000 crore is earmarked for the revival and upgradation of airports located in smaller cities, the major investment of Rs 13,000 crore would go towards the upgradation, expansion and extension of 39 airports. The cost would also include installation of solar power plants at several airports. The plan was approved in the last month by the Ministry of Civil Aviation.


The authority is keen to reduce emission levels and save fuel. Best practices are implemented and alternative sources of energy are being tapped. The new airport terminals under the AAI are proposed to have at least GRIHA ‘three star’ ratings. The solar energy is planned to be tapped in a big way. As of now, around 4.5 MW rooftop solar power plant is already installed at Tirupati airport. A 1.5 MW solar power plant will soon become operational at the Chennai airport, saving Rs 8 crore in annual power expenses for the facility. This would be the first time in the history of the airport that it will be generating power for its consumption. According to officials, the installation of the panels on the roof of the cargo terminal has been completed and it will become operational anytime after the election verdict is out.

The airport regulatory authority, Airports Economic Regulatory Authority (AERA) has set a tentative ceiling cost of Rs 65,000 per sq mtr for the construction of terminal building and Rs 4,700 per sqm for the runway/taxiway/apron construction excluding earthwork up to subgrade level. Airport operators need to justify the cost if it is above the ceiling rate. Ceiling costs are being fixed as a reasonable benchmark for evaluating airport development fee that is being charged from the end users.

The Union Cabinet has recently approved the new Civil Aviation Policy. The Policy aims at:

  • India to become 3rd largest civil aviation market by 2022 from 9th
  • Domestic ticketing to grow from 8 crore in 2015 to 30 crore by 2022
  • Airports having scheduled commercial flights to increase from 77 in 2016 to 127 by 2019
  • Cargo volumes to increase by 4 times to 10 million tonnes by 2027
  • Taking flying to masses – Enabling Indians to fly at Rs. 2,500 per hour under Regional Connectivity Scheme at unserved airports
  • Requirement of 5 years of domestic flying for starting international operations removed
  • Flexible and liberalized ‘open skies’ and ‘code-share’ agreements
  • Incentives to MRO sector to develop as hub for South Asia
  • Ensuring availability of quality certified 3.3 lakh skilled personnel by 2025
  • Development of greenfield airports and heliports
  • Enhancing ease of doing business through deregulation, simplified procedures and e-governance
  • Promoting ‘Make In India’ in Civil Aviation Sector



Delhi International Airport Ltd (DIAL), the GMR-led consortium that runs the Indira Gandhi International (IGI) Airport has submitted its master plan to the Ministry of Aviation for expansion. DIAL proposes to demolish the Haj Terminal (T2) and make swanky Terminal 4 operational, fourth runway, expansion of existing Terminal 1D by 2020.

DIAL cites a recent survey by the National Council of Applied Economic Research to point out the contribution of Delhi Airport to the Indian economy. In FY2009-10, the airport contributed 0.45% to the national GDP and 13.53% to the Delhi GDP amounting to Rs 29,470 crore. With further capacity building, DIAL expects the contribution to go higher and touch Rs 90,950 crore by 2020.

The Kempegowda International Airport has started work on its Phase-II expansion which includes construction of the second terminal (T2) and a parallel runway. The second phase is likely to complete by 2022 at an estimated cost of Rs.4,000 crore. The site levelling work is on and likely to complete in 12 months.

The second terminal construction will be taken up in two phases. The first phase completion by 2022 can provide 20 million passenger handling capacity. In the second phase, another 15 million passengers handling capacity per annum will be added. The airport will have around 55 million passenger handling capacity once T2 is completed which also includes 20 million passengers in T1. The project funding is planned through debt and internal accrual. The construction of the second terminal is likely to start by January, 2017.

Pune Airport is located approximately 10 km north-east of Pune in the state of Maharashtra. The airport is a civil enclave operated by the Airports Authority of India at the eastern side of Lohegaon Air Force Station of the Indian Air Force. A major revamp of the Lohegaon airport is proposed. The expansion plan includes increasing the parking bays and terminal capacity upgradation. Another proposal is underway to acquire another 30 acre from Indian Oil Corporation (IOCL).

In view of the eighth BRICS summit that will be held in Goa, the state government plans to send a proposal to the defence ministry for releasing more land to construct four new parking bays at the Goa International Airport at Dabolim. At present eight aircraft can park at the airport.