AAI to invest Rs 25 K cr for upgradation of facilities

HYDERABAD: The Airports Authority of India (AAI) on Friday said it will invest Rs 25,000 crore over the next five years on building new airports and upgrading existing facilities. In the process, the airports’ passenger-handling capacity is expected to be doubled from the current 345 million passengers per annum to over 700-750 million by 2030. On an average, the AAI spends about Rs 3,000 to Rs 4,000 crore a year on airports development. However, from now, it will increase it to Rs 5,000 crore per year.

The plan also includes converting under served and unserved airports under the Udaan scheme, where the government of India gives funds to AAI. For instance, the Centre has allotted Rs 4,500 crore under the Udan scheme in the past.

“We have already made 48 such airports operational in the last three years. To meet these requirements, we have a huge capex requirement,” said Arvind Singh, Chairman, AAI.

Currently, of the total 110 functional airports across the country, more than 90 are operated by AAI. Besides, of the 21 approved greenfield airport projects, five have already been completed. “We are a profit-making company with zero debt. We have our own surplus and we are earning revenue,” Singh added.

Meanwhile, of the Rs 25,000 crore planned capital expenditure, AAI will raise about $300 million via the External Commercial Borrowing (ECB) route next fiscal.