The government has committed Rs 1,000 crore as an investment to build airports over the next five years
The government is planning to build 100 additional airports, add 1,000 new routes connecting smaller towns and establish a plane-leasing financing business by 2024 to boost the economy, reports The Economic Times.
The NITI Aayog proposal was discussed during an infrastructure review meeting held in mid-October. The government's policy think-tank also proposed increasing the strength of locally trained pilots to 600 and doubling domestic aircraft fleet to 1,200 by 2024, the paper quoted sources as saying.
After announcing its drone policy in January, the government will also look at completing drone corridors by 2021, followed by allowing drone deliveries by 2023, the source added.
The government has committed Rs 1,000 crore as an investment to build airports over the next five years. The development is aimed at supporting the government’s dream of India being a $5 trillion economy by 2025.
Moneycontrol could not independently verify the report.
The move coincides with a domestic slowdown and with economic activity at a six-year low. Finance Minister Nirmala Sitharaman in September also announced a corporate rate tax cut to take advantage of the ongoing trade war and to compete with Vietnam and Indonesia for investments.
The source added that the government is aware of India’s high taxation and jet fuel prices impacting investment in the sector and would work to rationalise the same by 2020.Meanwhile, neighbour China’s infrastructure goal of 450 commercial airports by 2035 almost doubles its 2018 count. Comparatively, India added 38 airports this year, with contracts for 63 more issued.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.