The government will invest $60 billion in reaction to intense growth in domestic air travel
India is about to undergo a massive construction project. The country’s government has decided to follow the boost in the domestic aviation market and invest around $60 billion to build 100 new airports across the country.
Over past three years, the country’s domestic aviation sector has experienced a double-digit growth and according to the government, the current infrastructure will soon be insufficient.
“We have plans for 100 new airports to be built in India in the next 10 to 15 years with investments of almost close to $60 billion,” India’s civil aviation minister, Suresh Prabhuminister said at a press conference.
“We plan to put it in the public domain for anyone interested in building infrastructure or airports will get an advanced intimation on where it is going to happen… Our strategy is clear. We have to do it in a PPP mode. We need to have private sector participation.”
The ministry aims to construct around 70 new airports in areas without such infrastructure. The rest will be secondary airports that can deal with a sudden growth in demand for air travel that threatens to overwhelm the current supply.
There are around 120 airports in India today meaning that if the plan is delivered, in the next 10 to 15 years, the number will almost double.
The International Air Transport Association’s data suggest that India’s domestic air demand was highest amongst major aviation markets such as Australia, Brazil, China, Japan, Russia, and the United States. In January, for instance, domestic passenger traffic grew by almost 18 per cent.