Cabinet approves expansion of airport infrastructure at Lucknow, Chennai & Guwahati airport

By: | Published: May 3, 2018 5:08 PM

Recognising its role as the growth driver of the Indian economy, the Government of India has given enhanced trust for the infrastructure sector in the Union Budget 2018-19

Airport capacity upgradation and expansion require both development of new greenfield airports and expansion of existing brownfield airports and same will be funded by the Indian private sector and Airports Authority of India by leveraging its balance sheet

The Cabinet Committee on Economic Affairs, chaired by the prime minister Narendra Modi has given its approval to for expansion and upgradation of integrated terminals at Chennai, Guwahati & Lucknow Airports, at a cost of INR 2467 crore, INR 383 crore and INR 1232 crore, respectively.

Highlights of the three projects are as follows:

Lucknow Airport: Construction of new Integrated Terminal will have an area of 88,000 sq m along with the existing terminal building with 16292 sq m and will have annual capacity to handle 2.6 million international and 11 million domestic passenger traffic. The new terminal building would cater to the requirement of passenger growth up to the year 2030-31.

Chennai Airport: Total built up area of the proposed terminal building, including the present proposal measuring 197000 sqm shall be 336000 sqm with an annual capacity to handle 35 mppa. The new terminal building incorporates green building features with an aim to achieve GRIHA-4 Star rating. The building would cater to the requirement of passenger growth up to the year 2026-27.

Guwahati Airport: The new terminal building shall have an area of 102500 sq m to handle combined annual capacity (old and new terminals) of nine mppa. The building would cater to the requirement of passenger growth up to the year 2026-27. This will encourage investment & tourism in NER with thrust on ‘Act East’ Policy.

Recognising its role as the growth driver of the Indian economy, the Government of India has given enhanced trust for the infrastructure sector in the Union Budget 2018-19. Towards this endeavour, Government of India has brought out National Civil Aviation Policy (NCAP), which is the stepping stone to provide robust air connectivity throughout the length and breadth of our country. The Policy also envisages to create an ecosystem which encourages economic growth of the country, by enabling people to connect with ease at an affordable cost, through Regional Connectivity Scheme (RCS), aptly titled as UDAN (Ude Desh ka Aam Nagrik).

The country has witnessed phenomenal growth rate in the range of 18 to 20 percent in the last three years. According to IATA Traffic Study, India, at 7th position as of now, is likely to take third position by 2023-24 by overtaking UK, Japan, Spain & Germany. The current rate of the growth in domestic aviation sector of India is the highest globally.

To meet the growing demand, Government of India has launched a new initiative of NABH Nirman (NextGen Airports for Bharat), wherein systems and processes are geared to provide enhanced airport capacity to handle 1 billion trips in the next 10 to 15 years.

Airport capacity upgradation and expansion require both development of new greenfield airports and expansion of existing brownfield airports and same will be funded by the Indian private sector and Airports Authority of India by leveraging its balance sheet. Airports Authority of India is in the process of implementing plans for development of infrastructure to meet growing aviation demand by creating additional capacity at AAI Airports like, Chennai, Guwahati, Lucknow, Agartala, Patna, Srinagar, Pune, Trichy, Vijayawada, Port Blair, Jaipur, Mangalore, Dehradun, Jabalpur, Kolhapur, Goa, Rupsi, Leh, Calicut, Imphal, Varanasi & Bhubaneswar with a capex of INR 20178 Crores in the next four to five years.

AAI has already awarded the works at Agartala, Calicut, Port Blair towards construction of new state-of-the-art integrated terminals and is in the process to immediately approve the works for upgradation and expansion of capacity at Chennai, Lucknow and Guwahati Airports, at a cost of INR 2467 crores, INR 1383 crores and INR 1232 crores, respectively. Similarly, upgradation of airside capacity by way of strengthening and extension of runways, construction of new apron bays has been taken up to cater to the demand from airline operators who have placed confirmed orders for almost 900 aircrafts in the coming 10 years.

Under New Greenfield Airport Policy, many major cities are expected to have multiple airports. Government has granted approval for Noida International Airport (Jewar), Mopa (Goa), Purandar Airport (Pune), Bhogapuram Airport (Visakhapatnam), Dholera Airport (Ahmedabad), Hirasar Airport (Rajkot). Capex outlay of INR 50000 crores is expected in the development of New Greenfield Airports, wherein approval of Government of India has been given. In the private sector also, upgradation and expansion is in the offing for Delhi, Bengaluru, Hyderabad Airports at a cost of INR 25000 crores in the next five years’ time.

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