IIFCL Sanctions ₹8800 Crore in Loans to Boost India’s Aviation Sector

IIFCL Sanctions ₹8800 Crore in Loans to Boost India's Aviation Sector

VoM News Desk | October 8, 2023 | 06:06 PM IST | Travel | Follow on Google News

IIFCL Sanctions ₹8800 Crore in Loans to Boost India’s Aviation Sector

IIFCL Sanctions ₹8800 Crore in Loans to Boost India’s Aviation Sector

India Infrastructure Finance Company Limited (IIFCL) has taken a significant step to bolster India’s aviation industry and enhance its existing infrastructure. Director PR Jaishankar announced on Sunday that IIFCL has sanctioned loans worth ₹8,800 crore for the sector, with disbursements totaling approximately ₹4,000 crore specifically allocated for airport development projects.

A Key Player in Aviation Financing

Recognizing the vital need for substantial investments in the aviation sector to achieve growth and development, Jaishankar emphasized IIFCL’s role as one of the primary financiers of airport projects in India. IIFCL has already extended its support to airport projects with a cumulative project outlay of around ₹74,000 crore. Jaishankar further highlighted that IIFCL is actively involved in financing and supporting projects at numerous major airports across the country.

India’s Aviation Sector Growth Trajectory

In recent years, India’s aviation industry has witnessed remarkable growth, primarily driven by the increasing preference for air travel among a burgeoning middle-income population. This expansion has been accompanied by significant infrastructure development at major airports, facilitated by supportive government policies. The result has been a substantial rise in passenger numbers.

Rapid Expansion of Passenger Capacity

With the ongoing expansion efforts, the passenger handling capacity at Indian airports is projected to rise from the current 350 million passengers per annum to 500 million by the end of the current financial year. Moreover, ambitious long-term goals aim to accommodate a staggering 2 billion passengers annually by 2047.

Continued Support and Partnership

Jaishankar affirmed IIFCL’s commitment to collaborate with the government under the public-private-partnership (PPP) model. This partnership will focus on developing world-class airport infrastructure across India, including the exploration of opportunities for funding greenfield airport projects and supporting maintenance, repairs, and overhaul (MRO) facilities.

National Infrastructure Pipeline (NIP)

To accommodate the growing number of air travelers and expand airport infrastructure, the National Infrastructure Pipeline (NIP) has allocated approximately ₹91,000 crore in capital expenditure (capex) for the civil aviation sector over the next five years, until FY25.

This significant investment underscores the commitment to building a robust aviation ecosystem in India, accommodating the needs of a burgeoning population of air travelers.

VoM News Desk

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