The India Infrastructure Finance Company Limited (IIFCL) has given approval for loans amounting to Rs 8,800 crore for the development of airports and civil aviation infrastructure within the nation, its Managing Director PR Jaishankar said.
India harbors ambitious aspirations for the expansion of its civil aviation sector, and the achievement of this vision necessitates substantial investment, Jaishankar said. He went on to state that IIFCL has already approved loans of approximately Rs 8,800 crore, with around Rs 4,000 crore disbursed for the execution of airport projects.
Driving Forces Behind India’s Aviation Sector Growth
IIFCL stands as a prominent financier for airports across India, having provided crucial support to projects with a cumulative project value of approximately Rs 74,000 crore. Furthermore, IIFCL has established its presence in nearly all major airports within the country.
The aviation sector in India has experienced substantial growth in recent years, thanks to investments from both the government and the private sector. This growth is primarily driven by the rising number of middle-income households, infrastructure enhancements at leading airports, and a supportive policy framework.
Projected Surge in Passenger Capacity
As a result of this expansion, the capacity for handling passengers is anticipated to escalate from the current 350 million per annum to 500 million per annum by the conclusion of the current fiscal year, and further to 2 billion by 2047.
Jaishankar affirmed that IIFCL is committed to providing ongoing support for the development of world-class airport infrastructure in India. The company will explore opportunities to finance greenfield airport projects, as well as maintenance, repair, and overhaul (MRO) facilities through the public-private partnership (PPP) model, utilizing various financing methods such as term loans, subscription to bonds, refinancing, and credit enhancement.
Highlighting the significance of the airport sector, Jaishankar emphasized its potential to yield a substantial positive impact on the economy, boasting an economic multiplier of 3.1 and an employment multiplier of 6.
To cater to the burgeoning demand for air travel in India, Jaishankar stressed the imperative need to expand airport infrastructure. According to the National Infrastructure Pipeline (NIP), an estimated Rs 91,000 crore in capital expenditure has been outlined for the civil aviation sector over the next five years, concluding in FY25.
(With PTI Inputs)