AAI picks 150 small airports for upgrade to boost cargo and passenger traffic: Report

In addition to creating passenger facilities, the modernization plan will also develop infrastructure for cargo handling.

The Airports Authority of India (AAI) has selected 150 small airports and airstrips for modernisation to address growing demand for air cargo and rising passenger traffic, Mint reported, citing sources.

These airports, chosen from over 400 across the country, are mostly underutilised, with the initiative aiming to leverage the existing aviation infrastructure, under direct instructions from the government. The selected airports include those in 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, the report said.

The modernisation plan primarily focuses on enhancing air cargo capabilities to support the shipment of pharmaceuticals, textiles, electronics, and perishables—goods that require fast delivery amid disruptions in traditional trade routes and geopolitical tensions. The new facilities will also accommodate increasing passenger traffic.

The AAI will be responsible for implementing the modernisation measures, which will include construction of longer runways, passenger amenities aligned with International Civil Aviation Organization (ICAO) standards, and integration of digital technologies. The overhaul also comes at a time when there is a growing shift towards air cargo, driven by rising shipping costs due to delays, increased insurance premiums, and heightened risks associated with goods in transit.

The upgrade plan also includes development of infrastructure for cargo handling. Satellite freight cities with multimodal transport links, cargo terminals, cold storage facilities, automated storage and retrieval systems, and mechanised cargo transportation are listed for the infrastructure facelift. Electronic Data Interchange (EDI) systems will be implemented to streamline operations by enabling electronic exchange of business documents in a standardised format among stakeholders in the trade sector.

A senior government official told Mint that the plan is designed to promote tourism, trade, and bridge connectivity gaps in remote and sensitive regions. The focus will be on safety, efficient aircraft and cargo handling, and ensuring that the modernised airports meet the growing needs of both passengers and the cargo sector.