The Union cabinet on Monday has approved a proposal to spend Rs 4,500 crore for the revival and development of 50 un-served or under-served airports and airstrips in the country. The move would boost the Indian aviation sector and increase the regional connectivity.
As per the official statement, around 15 airports or airstrips will be revived during financial year 2017-18 and 2018-19 each, while remaining 20 airports or airstrips would be revived during FY2019-20.
The revival of these un-served or under-served airports and airstrips will connect small cities or towns on commencement of the operation of flights. The move will further boost the economic development in these areas and also create employments and related infrastructure in the surrounding areas.
“The Revival of airstrips/airports will be 'demand driven', depending upon firm commitment from airline operators as well as from the State Governments for providing various concessions as Airports will be developed without insisting on financial viability,” said the government in a statement.
During Union Budget 2016-17 Finance Minister Mr. Arun Jaitley had announced for making adequate provisions for revival of un-served and underserved airports in the country.
The huge investment of Rs 4,500 crore would further boost the Indian Construction Equipment industry, which is entirely depends on the infrastructure investment in the country, thus the CE manufacturers will continue to witness the remarkable sales growth for another year. Last year, as a result of the investment in infrastructure projects, especially in road sectors, the demand of construction equipment grew after a gap of four years.
The government had already announced the investment of Rs 3.96 lakh crore in the budget 2017-18 for the development and modernizations of roads, railways and ports sector. The government is committed to spread new railways lines of 3,500 km and allocated Rs 64,900 crore for the development of highways in the next fiscal, the investment would further drive the sales of road building equipment in 2017 after remarkable sales growth in 2016.
In budget 2017-18, the government alone allocated Rs 2.41 lakh crore for the transportation sector. The Indian government is mainly betting to improve urban transport infrastructure to meet the need of rising urban population in the country. Currently, various Metro Rail Projects are under way in cities Like Mumbai, Pune, Nagpur, Hyderabad, Chennai, Lucknow, Ahmedabad, Kochi, Kanpur, Noida, Navi Mumbai and others and other metro rail projects are under the planning stage.
Various research reports are also optimistic for the Indian construction equipment market and project positive sales growth on the back of government investment in infrastructure projects.