These airports have been picked from among the over 400 airports and airstrips within the country, most of which are barely operational, under directions from the top level in the government to leverage the existing aviation infrastructure. These include Aizawl, Kota, Muzaffarpur, Satna, Ziro, Jalgaon, Asansol, Malda, Jharsuguda, Khandwa, Panna, Raxaul, Vellore, Tezu, Agatti, Akola, Belgaum, Cooch-Behar, Gaya, Gorakhpur, Hubli, Kolhapur, Kandla, Kullu, Pantnagar and Rajahmundry, among others.
These new airports will be primarily used for air cargo to ship products such as pharmaceuticals, textiles, electronics and perishables that rely on swift delivery in the backdrop of disruption in the traditional trade routes and geopolitical tensions.
The modernization plan, which will be implemented solely by the AAI, involves adding longer runways and other amenities, along with digital technologies. The small airports and airstrips modernisation programme also comes in the backdrop of a perceptible shift towards air cargo, supported by rising shipping costs due to delays, increased insurance premiums, and the heightened risk of goods being damaged or seized during transit.
“Under the modernisation plan, in addition to creating passenger facilities in line with the International Civil Aviation Organization (ICAO) standards, infrastructure for cargo handling will be developed,” said a senior government official, one of the two people cited above, requesting anonymity.
According to an Icra report, India’s air cargo sector has experienced significant growth in recent months, with volumes increasing by 18% y-o-y between October 2023 and March 2024.
From April to August 2024, this growth accelerated, with volumes surging by an additional 20% to around 967,000 tonnes, the Icra report said. This assumes significance given India’s merchandise exports for the first half of fiscal year 2024-25 reached $211.46 billion, showing a slight increase from $209.38 billion during the same period in the previous fiscal year.
Also read | India looks to boost air cargo amid Red Sea trade disruptions
“This includes satellite freight cities with multimodal transport, cargo terminals, cold storage facilities, automated storage and retrieval systems, mechanized cargo transportation, and computerization, all aimed at boosting the export of agricultural and other value-added goods,” the official added.
India’s overall cargo volumes are expected to grow by 9-11% y-o-y, reaching 3.6-3.7 million tonnes this fiscal year. International cargo is projected to grow by 11-13%, while domestic cargo growth is expected to be around 4-6%. Air cargo handled at Indian airports increased by 7% y-o-y to 33.7 lakh tonnes in FY24. India currently has 38 operational domestic cargo terminals, including 27 additional terminals built since 2014 by AAI and its subsidiary, AAI Cargo Logistics and Allied Services Co. Ltd (AAICLAS). Airports Authority of India data shows a 7% y-o-y increase in FY24, with volumes reaching 3.4 million tonnes.
The modernization plan, which will be implemented solely by the AAI, involves adding longer runways and other amenities, along with digital technologies.
“Electronic Data Interchange (EDI) systems will be developed and interconnected among all stakeholders in the trade sector to streamline operations. The modernisation of airports is aimed at promoting tourism, trade, and bridging gaps in connectivity in remote and sensitive regions,” said a second person cited above who also did not want to be named.
EDI refers to a mechanism that enables the electronic exchange of business documents in the trade sector in a standardised format.
“Priority will be given to safety, passenger facilities, and efficient aircraft and cargo handling under the airport modernisation plan,” said the first person cited above.
Also read | Ease of doing business: Government in talks with industry stakeholders to ease air cargo processes, boost volumes
According to a January 2024 Ficci-KPMG report on India’s aviation sector outlook, the total number of air passengers in 2047 is estimated to grow more than six-fold, reaching around 1.3 billion; with the commercial fleet expected to increase to 3,500 aircrafts by 2047.
Queries emailed to AAI and the civil aviation ministry on 27 November remained unanswered till press time.
Mint earlier reported about the country’s airport authority’ plans for developing existing airstrips to full-scale airports and building new ones from scratch. India plans to more than double its airport count to 300 by 2047 from the present strength of 157 airports that are operational.
These plans come in the backdrop of the Union government planning a mega package for the civil aviation sector. The key components of the package will include reduced user charges, route optimisation, regulatory relaxations, and the rationalisation of ATF prices.
Adani Airport Holdings Ltd (AAHL), which operates the Chhatrapati Shivaji Maharaj International Airport in Mumbai, said AAI’s efforts towards air cargo capacity building may enrich regional hubs. “The Airports Authority of India’s modernisation efforts towards smaller airports and airstrips have the potential to significantly bolster the Country’s air cargo capacity. By enhancing the infrastructure and operational capabilities of these regional hubs, AAI can facilitate more efficient and extensive cargo operations, which is crucial for the economic development of under-served areas,” a spokesperson for AAHL told Mint in an email response.
Also read | Air India eyes 20% share in air cargo biz in 2-3 years
AAHL also indicated that public-private partnerships would aid in fostering investments in the cargo sector. “A collaborative effort with stakeholders, including airlines, logistics companies and local businesses would create a seamless cargo supply chain. Public-private partnerships can be the conduit that facilitates investment and innovation in cargo operations,” the spokesperson said. Along with runway expansion to accommodate larger aircrafts and improving the conditions of taxiways, AAI’s focus should also be on optimising state-of-the-art logistics technology including automated storage systems, as well as tracking systems, the AAHL spokesperson said.
With the rising number of flyers, security is an essential component of modernisation, AAHL said. “The anticipated surge in air travel over the next two decades underscores the urgency of enhancing our security infrastructure. In collaboration with regulatory agencies, AAHL is investing in the continuous training and development of security personnel to ensure they are equipped with the latest knowledge and skills to handle the evolving security landscape,” the spokesperson said, adding that AAHL is committed to the safety and security of all passengers.
And read | India’s smaller towns to get a big lift: 29 new airports
