AAI aims to spend Rs 30,000 cr capex in next five years

by Psu Connect
Date: 02-04-24

The Union Minister for Civil Aviation and Steel, Jyotiraditya Scindia, said that the Airports Authority of India (AAI) is primed for significant growth and profitability in the coming years, due to favourable tailwinds, during the 29th AAI Annual Day.

AAI aims to spend Rs 30,000 cr capex in next five years

According to the Civil aviation minister, AAI will be accorded as the most profitable infrastructure unit while surpassing all PSUs in terms of dividend profit earnings. The unit has embarked on spending a capital expenditure of Rs 30,000 crore for the next five years, exceeding the threshold of Rs 25,000 crore allocation in FY20-25.

The estimated ratio is expected to surpass the ambitious initiative of National Infrastructure Pipeline allocation, touted at Rs 91,000 crore for airport development using PPP modules.

AAI's growth strategy involves both financial performance and physical expansion. In FY24, the authority successfully launched 20 infrastructure projects, including a new greenfield international airport in Rajkot and airports in Ayodhya, Aligarh, and other cities.

In addition to this, AAI plans to develop new greenfield airports in Dolo (Assam), Kota (Rajasthan), and a civil enclave in Saharanpur (Uttar Pradesh). The infrastructure authority claims that sustainability is a priority, with 67 of AAI’s airports now powered by green energy and a goal of achieving even greater energy efficiency across the network.