Madhya Pradesh govt looking to build Delhi-like air cargo hub: CM Mohan Yadav

Mohan Yadav

The state government of Madhya Pradesh is keen on creating a "Delhi-like" air cargo hub considering the geographical location and infrastructure present in the state, Chief Minister Mohan Yadav said on July 4.

"Madhya Pradesh has a dense network of railways, metro, and expressways has been laid in the state. Now air transport and cargo facilities are being expanded in the state. There is a possibility of cargo in all seven airports in the state," Yadav said while speaking at the Air Cargo Forum India's annual conference in Delhi.

Yadav said construction of a cargo hub in the state will help explore the resources of the state, promoting trade and increasing employment opportunities.

"To make Madhya Pradesh a business center in the future, a desk named ‘Future Ready Madhya Pradesh’ has also been prepared. The pace of economic growth of the state is more than 20 percent and the rate of agricultural development is 25 percent," Yadav said.

He added that products worth $6 billion are transported through air cargo in Madhya Pradesh, which creates immense potential for the air cargo industry in the state.

Piyush Srivastava, Senior Economic Advisor at the Ministry of Civil Aviation, also said that to tap the potential of the country's air cargo sector, the focus should be on further improving processes as well as ensuring faster turnaround time.

"There will be a focus on further improving the ease of doing business and faster turnaround time in the air cargo sector," Srivastava said.

While passenger traffic has recovered after being hit by the coronavirus pandemic, air cargo is yet to fully recover to the pre-Covid levels. In 2023-24, the air cargo handled in the country was a little over 3,360,000 tonnes.

Surendra Kumar Ahirwar, Joint Secretary at DPIIT, said also said that while a lot of movement is happening on the logistics side, including the skilling of people, sub-optimal utilisation of existing air cargo facilities needs to be addressed in India.

He also emphasised on the need for developing hubs as part of the logistics infrastructure.

According to ACFI President Yashpal Sharma, "The air cargo sector accounts for nearly 10 per cent of domestic carriers' revenues." Citing market research reports, he said the country's air freight market is estimated to grow to $16.37 billion by 2027.

"Also, the plans to establish air transport shipment hubs at major airports are expected to drive the industry's growth," he added.