Indian airports, encompassing both private and government-run aerodromes, have announced an ambitious capital expenditure (capex) target of Rs 19,587 crore for the ongoing financial year. This significant investment aims to enhance passenger-handling capacities and accommodate the country’s growing air traffic. The Airports Authority of India (AAI), responsible for operating over 120 airports in the nation, will play a crucial role in achieving this goal, alongside numerous privately-run airports.
With Indian carriers planning to add more than 130 planes during the fiscal year 2023-2024, the planned capex will provide essential infrastructure upgrades to facilitate the country’s air traffic boom. By expanding and modernizing airports, India aims to meet the increasing demands of travelers and ensure efficient and seamless operations.
Breaking down the capex target, all airports under the Adani Group’s management have set their individual goals for FY24 at Rs 7,426 crores. These airports, which fall under the private sector, are strategically spread across various regions of the country and cater to a substantial number of passengers. Additionally, other privately-run airports have collectively set their capex target at Rs 8,161 crores, emphasizing their commitment to infrastructure development and passenger experience. The AAI-run airports, being government-owned, have earmarked a capex target of Rs 4,000 crores.
The cumulative capex target of Rs 19,587 crores for all Indian airports reflects the industry’s recognition of the need for substantial investments to support the country’s aviation growth. This financial commitment will allow airports to expand their capacities, upgrade facilities, and implement advanced technologies to offer a world-class experience to both domestic and international travelers.
India’s aviation sector has been witnessing remarkable growth over the years, driven by a surge in domestic and international travel. With a growing middle class and increased connectivity, air travel has become more accessible and convenient for a broader segment of the population. However, this growth also poses challenges in terms of infrastructure and capacity. The capex target set by Indian airports is a proactive step towards addressing these challenges and preparing for future demands.
