Question : Growth of Civil Aviation Sector

(a) the details of the growth rate registered in aviation sector in the country specially in Maharashtra during the last three years and the current year;
(b) whether the Airports Authority of India (AAI) has conducted any study/evaluation regarding the expected growth in aviation sector of the country in the next three years and if so, the details thereof; and
(c) the steps taken / proposed to be taken by the Government to meet the increasing demand in aviation sector in future?

Answer given by the minister

Minister of State in the Ministry of CIVIL AVIATION (GEN. (DR) V. K. SINGH (RETD))

(a) The details of the growth rate registered in air passenger throughput - that is, total arrivals and departures to, from and within the country during the last three financial years and the current financial year (Apr to Dec 2021) are provided at Annexure-I. Data related to Maharashtra is also provided therein.

(b) As per the traffic forecast by Airports Authority of India (AAI), the all-India passenger throughput growth for the next three years is provided at Annexure II. These projections, however, are subject to reassessment given the unpredictable nature of the Covid pandemic and its severe impact on domestic and international air travel. ;
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(c) The Government has taken several steps to meet the increasing demand in aviation sector in future, some of which include the following:;

(i) AAI has taken up development of new and existing airports with a projected capital expenditure of around Rs. 25,000 crores in next five years. This includes construction of new terminals, expansion and modification of existing terminals, expansion and/ or strengthening of existing runways, aprons, Airport Navigation Services (ANS) infrastructure, control towers and technical blocks etc.;

(ii) The Public Private Partnership (PPP) airports at Delhi, Hyderabad and Bengaluru are undertaking major expansion projects of around Rs. 30,000 crores by 2025. Additionally, Rs. 36,000 crores have been planned for investment in the development of new Greenfield airports across the country under PPP mode.;

(iii) Government of India (GoI) has accorded ''in-principle'' approval for setting up of 21 Greenfield Airports across the country. So far, eight Greenfield airports namely, Sindhudurg and Shirdi in Maharashtra, Durgapur in West Bengal, Pakyong in Sikkim, Kannur in Kerala, Orvakal in Andhra Pradesh, Kalaburagi in Karnataka and Kushinagar in Uttar Pradesh have been operationalized.;

(iv) Under Regional Connectivity Scheme (RCS) - UdeDesh ka Aam Nagrik (UDAN), 403 routes connecting 65 airports (including 8 heliports and 2 water aerodromes) have been operationalised as on 31.01.2022.

(v) Goods and Services Tax (GST) rate has been reduced from 18% to 5% for domestic Maintenance, Repair and Overhaul (MRO) services.

(vi) A conducive aircraft leasing and financing environment has been enabled. ;

(vii) The domestic capacity of the airlines has been restored to full, as in during pre-Covid times.;

(viii) Improvement in air navigation infrastructure at Indian airports is being carried out.

(ix) The number of freighter aircraft deployed by Indian carriers has been increased from 7 in 2018 to 28 in 2021. As a result, the share of Indian carriers in international freighter movements has increased from 2% to 19% over last two years.
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