Aviation

Summary
  • India has 91 international carriers out of which 5 are domestically owned. India has air connectivity with 59 countries through 344 routes.2
  • With the industry’s USD 30 Bn contributions to India’s GDP, the domestic aviation market is projected to rank 3rd globally by 2024.3
  • Air traffic has been growing rapidly in the country as compared to the global average. One hundred more airports would be developed by 2024 to support the Udaan scheme. It is expected that the air fleet number shall go up from the present 600 to 1200 during this time.4
  • AAI has awarded 948 valid routes to Selected Airline Operators (SAOs) across the length and breadth of the country involving 154 RCS airports including 14 water aerodromes and 36 helipads. 
  • Selected Airline Operators(SAOs) have operationalized 415 RCS routes under the Scheme as on date (27.03.2022), involving 66 airports including 2 water aerodromes and 8 helipads.
  • Ministry of Civil Aviation issued 170 Drone Acknowledgement number in the month of May 2021.
  • India has the potential to be global drone hub by 2030.
Reasons to Invest
  • GST reduced from 18% to 5% for domestic Maintenance, Repair and Overhaul (MRO) services.
  • Cabinet Committee on Economic Affairs has approved the extension of time and scope for revival and development of unserved and under-served airstrips with USD 643 Mn budgetary support.5
  • Greater focus on infrastructure development such as Open Sky Policy and Airports Authority of India’s (AAI) drive for modernization of airports and air navigation systems.
  • 1000 new aircraft have been estimated to be added to the Indian civil aviation sector.
  • Land has been allotted for Jammu airport and the airport will be developed with INR 700 crore.
  • J&K Government announces to build helipads in every district and encourages the private sector to invest & link different sectors.
  • Digital initiatives
    • eGCA - The function & process of Directorate General of Civil Aviation (DGCA) is being moved to an online platform to provide faster delivery of services & regulation oversight. The e-GCA was initiated on 14th May 2019. The first module on pilot licensing shall be launched in November 2019.
    • DigiSky - Pursuant to the issuance of CAR by DGCA on 27.08.2018, DigiSky online portal has been launched to meet the requirement laid down by the CAR for flying Civil Drones. The Beta version of DigiSky is available and captures the entire gamut of activities relating to drones viz. registration of drones and pilots, approval of flight path, post-flight analysis etc. based on the distinctive features of No Permission No Takeoff (NPNT).
    • e-sahaj - 100% of security clearances pertaining to the Ministry have been made online on e-sahaj online portal launched by the Ministry of Civil Aviation. The portal is operational for granting clearances in respect of 24 categories.
    • DigiYatra - Trial for the rollout of DigiYatra initiative has been started at Bangalore and Hyderabad airports. The initiative envisages seamless and hassle-free passenger travel using biometric technologies to improve passenger experience, reduce queue waiting time as passengers can walk through gates by using advanced security solutions. It will remove redundancies at checkpoints and enhance resource utilization.
  • The security component of ASF rationalized - Passenger Service Fee (PSF) now called Aviation Security Fee (ASF) charged as part of passenger fare and collected by the airlines which is deposited in the escrow account of respective JVs or AAI account has been rationalized and a National Trust has been created to pool all the ASF collections across airports. The trust is to be managed by AAI. The collection of PSF(SC)/ASF in a single pool account will serve the purpose of cross-subsidizing the smaller airports of AAI with low PSF(SC)/ASF collection thus bridging the funding gap.
  • AAI has embarked upon the development and expansion of airports in the country at a cost of INR 20,000 Crore in the next 4-5 years in order to meet the growing passenger demand in the country.
  • The total number of airports has increased from 72 to 136 since independence under the UDAN Scheme. GOI have set a target to increase this number by 220 in the next five years which will include helipads and water aerodromes. 
  • GOI has sanctioned INR 120 crore for research and other work related to  the usage of drones in coming years for various applications.
  • With the development of Noida International Greenfield Airport at Jewar, Uttar Pradesh, there will be all-round development of the industrial infrastructure in the region, employment opportunities will increase and manufacturing and export will be encouraged.  The Airport will also facilitate air traffic along with rapid growth in tourism.
  • Digital Sky Platform (DSP) has been launched to regulate the entire gamut of activities pertaining to drone operations as well as to function as a single window online platform to ensure smooth functionality of the applications.
  • Unmanned Aircraft System (UAS) Traffic Management (UTM) Policy framework, 2021 has been released on 24 Oct 2021 to enable complex operations of drones and increase the overall safety in the UTM airspace.
  • Ministry of Civil Aviation will be spending close to INR 98,000 crores over 4 years in terms of setting up new greenfield airports and expansion of existing brownfield airports. Out of this,  INR 62,000 crores will be invested by private sector and INR 36,000 crores will be invested by the Government of India through AAI. 
  • Government, through AAI, will expand 42 brown field airports and setup 3 new greenfield airports while private sector will expand 7 existing brownfield airports and setup 3 new greenfield airports including Navi Mumbai, Jewar and Mopa.
Key Achievements
  • The Open Sky Policy for foreign cargo carriers promulgated vide AIC 18/1992 has been reviewed by the Government and some changes have been made with a view to ensuring fair and equal opportunity in the air cargo capacity offered by Indian registered airlines and airlines registered elsewhere. 
  • During the last five years (FY 2016-17 to FY 2020-21), an amount of Approx. INR 17,784 cr has been spent by the Government/Airports Authority of India in renovating/building airports.
  • MoCA has launched eGCA and eBCAS platforms where all functions, operational processes are being brought on computerized management command. 
  • Number of operational airports have increased from 2 to 9 in 2021 in UP, covering 80 destinations. GOI aims to increase the operational airports to 15.
  • Bhopal has increased its connectivity from 5 to 9. In 4 months, Madhya Pradesh has increased its connectivity from 27 to 50 cities. GOI has unlocked 50% achievement in terms of aerial connectivity for Madhya Pradesh.
  • Bhubaneswar is connected with 19 cities by 38 aircraft movements. Bhubaneswar airport is 80% powered by solar energy, making it a stellar example for the country.
  • DGCA has implemented its e-governance platform eGCA. The project has been aimed at automation of the processes and functions of DGCA for ushering in a paradigm shift from restrictive regulation to constructive collaboration.
  • National Aerospace Laboratories, India has developed indigenous, medium class BVLOS multi-copter UAV. It can be used for variety of BVLOS applications for last mile delivery like medicines, vaccines, food, postal packets, Human organ’s etc.
  • First direct flight of Indigo airlines between Bhubaneswar (Orissa) – Jaipur (Rajasthan) has been initiated by MoCA.
  • Government of India has accorded 'in-principle' approval for setting up of 21 Greenfield Airports across the country. 
  • Till November 2021, eight Greenfield airports namely, Shirdi in Maharashtra, Durgapur in West Bengal, Pakyong in Sikkim, Kannur in Kerala, Orvakal in Andhra Pradesh, Kalaburagi in Karnataka, Sindhudurg in Maharashtra and Kushinagar in Uttar Pradesh have been operationalized.
  • Out of 17,726 registered pilots in India 2,764 pilots are women covering 15% of the total Pilots in the country which is significantly higher than the international average of 5%.
  • The number of freighter aircraft deployed by Indian carriers has increased from 7 in 2018 to 28 in 2021. As a result, the share of Indian carriers in international freighter movements to and from India increased from 2% to 19% over the last two years.
  • IndiGo has commenced the flight between Kanpur and Bengaluru, thus increasing connectivity within the country.
  • Indigo has started a direct flight between Bhopal (Madhya Pradesh) – Raipur (Chhattisgarh) route, thus increasing connectivity within the country.
  • India's largest flying academy - Indira Gandhi Rashtriya Uran Akademi (IGRUA) at Amethi (Uttar Pradesh) - has been permitted to carry out pilot training in Gondia (Maharashtra) and Kalaburagi (Karnataka) to enhance its flying hours and aircraft utilisation, which get severely affected during winter months due to visibility issues.
  • Four Airports of Airports Authority of India(AAI) namely Varanasi, Pune, Kolkata and Vijayawada and Three Joint Venture Airports namely Hyderabad International Airport Ltd. (HIAL), Bangalore International Airport Ltd. (BIAL), & Delhi International Airport Ltd. (DIAL) have completed preliminary testing of the Digi Yatra Biometric boarding system with registration only for the 'Day of Travel'.
  • Priority treatment during security check is provided for persons with disability at all major airports managed by AAI as well as JV airports and airports under PPP mode. Security personnel are trained during induction to assist persons with disability and are also sensitized about the 'SOP for screening of passengers with special needs and medical conditions' issued by BCAS.
  • In a constant endeavour to connect Eastern India better, first direct flight of Indigo airlines is flagged off on Guwahati (Assam) to Pune (Maharashtra) route.
  • Indira Gandhi Rashtriya Uran Akademi (IGRUA) sets a new record of 19000 flying hours in 2021. The academy is set to hit a target of 25000 flying hours in 2022 by inducting a record 121 cadets.
  • The first flight operating between Delhi and Kushinagar under the RCS-UDAN commenced at the newly inaugurated Kushinagar airport, Uttar Pradesh to enable the country with better air connectivity under the UDAN scheme.
  • Agartala Airport is developed as one of the major Airports in North East Region situated in the capital of Tripura. It is capable of handling 4C type of Aircraft operations. Operators like Indigo, Air India, Flybig are presently operating 230 flights in a week, connecting Kolkata, Dibrugarh, Guwahati, Imphal, Shillong, Lengpui, Bangalore and Delhi.
  • AAICLAS has created 27 domestic air cargo terminals since 2014 with the aim to enhance the cargo handling facilities at the terminals including in the Tier-II and Tier-III cities depending upon the feasibility for volume of cargo.
  • GOI has rapidly expanded from having 7 Cargo Freighters to 28 Cargo Freighters in a period of 3 years.
  • Airports Council International has initiated the ‘Voice of the Customer' initiative to acknowledge and recognize airports that continued to prioritize their customers and are committed to ensuring their voice was heard. Seven AAI airports were chosen for Voice of Customer Recognition 2021 by ACI.
  • As on 01st February 2022, India has air bubble arrangements with 35 countries. Flights under the air bubble arrangement will continue till the time scheduled international commercial passenger services to/from India remain suspended. 
  • SpiceJet was awarded the Delhi-Khajuraho-Delhi route under the RCS-UDAN 3.0. Two new FTO (Flight Training Organizations) will come up in Khajuraho which will help in training the commercial pilots. 
  • India’s first indigenous Flying Trainer HANSA-NG designed and developed by CSIR-National Aerospace Laboratories, Bangalore under the aegis of Council of Scientific and Industrial Research, has successfully completed the sea level trials at Puducherry.
  • PM inaugurates the New Integrated Terminal Building at Maharaja Bir Bikram Airport in Agartala to enhance air connectivity in the North East.
  • 15% of our pilots in India are women which is 3 times more than the global average. 
  • IGRUA completed a total of 19,110 flying hours in financial year 2021-22 which is highest since its establishment in 1986.
  • First direct flight between Gorakhpur and Varanasi was flagged-off. SpiceJet was awarded the route under the RCS-UDAN 4.1.
  • Direct flight between Indore and Jammu flagged-off.
  • Direct flight between Bhopal and Chennai flagged-off.
  • First flight of Made in India HAL Dornier Do-228 is flagged off to connect airports and Advanced Landing Grounds (ALGs) of Northeast India. The flight will be operational from Dibrugarh in Assam to Pasighat in Arunachal Pradesh and finally to Lilabari in Assam.
  • The Ministry of Civil Aviation (MoCA) flagship Regional Connectivity Scheme UDAN (UdeDeshkaAamNagrik) has been awarded Prime Minister’s Award for Excellence in Public Administration 2020 under the category “Innovation (General) – Central”.
  • AAI successfully conducted flight trial at Kishangarh Airport, Rajasthan using GAGAN (GPS Aided GEO Augmented Navigation)based LPV Approach Procedures. India is the first country in Asia Pacific Region to achieve such a landmark.
  • DGCA has certified 23 schools for training drone pilots in India in 6 months till May 2021 and aims to keep increasing the number to cut the cost of training drone pilots withing the country.
Recent Announcements

19th May 2022: Port Blair Airport to get New Terminal Building by October 2022 at an estimated cost of INR 707.73 Crore.

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14th May 2022: Jabalpur Airport to get New Terminal Building with enhanced capacity and reflection of local art & culture.

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28th April 2022: AAI successfully conducts flight trials using GAGAN based LPV approach Procedure at Kishangarh Airport.

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25th April 2022: Ministry of Civil Aviation and Govt. of Himachal Pradesh Sign MoU for Development of Nagchala Airport in Mandi.

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20th April 2022: Civil Aviation Ministry’s “UDAN” scheme awarded Prime Minister’s Award for Excellence in Public Administration.

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Statistics
  • Freight traffic on Indian airports is expected to cross 11.4 MT by 2032.7
  • By 2024-25, India aims to develop more than 200 airports, helipads and water aerodromes in the country.
  • India is the fastest-growing aviation market and as per IATA the Country is expected to cater to 520 mn passengers by 2037.8
  • During the month of March 2022, all operational airports (taken together) handled 193.05 thousand aircraft movements (excluding General Aviation Movements), 24.43 mn passengers and 283.28 thousand tonnes of freight.
  • Till 2025, GOI plan to operationalise more than 200 airports from current 136 airports.
  • During the month of December 2021, all operational airports (taken together) handled 25.12 mn passengers and 275.38 thousand tonnes of freight.
  • There has been expansion across the spectrum in the sector, with the number of airports in the country going up from 74 in 2013-14 to almost 140 (including Heliports and water domes). The number is likely to go up to 220 by 2024-25.  
  • There were 400 aircrafts in the country in 2013-14 and the number has gone up to 710 in 7 years. It is intended that more than 100 aircrafts should join every year.
  • 1748 foreign airlines flights and 1440 domestic airlines flights are connecting India globally.
  • As of May 2022, Indian Cargo revenue stands at INR 2,000 crore with 3.1 million metric tonnage having a CAGR of 13%. Today, India has 21 international and 35 domestic cargo terminals.
Growth Drivers
  • Three airports viz. Ahmedabad, Lucknow and Mangalore of the Airports Authority of India (AAI) have been awarded to a private concessionaire through Public-Private Partnership (PPP) to bring efficiency in delivery, expertise, enterprise and professionalism apart from harnessing the needed investments in the public sector. 6
  • Country’s tallest Air Traffic Control tower has been inaugurated on 02.09.2019 at the Indira Gandhi International Airport. This iconic infrastructure will ensure up-scaled services and systems for efficient, smooth and uninterrupted air traffic management. 
  • AAI and other Airport Developers have targeted capital outlay of approximately INR 91,000 crore in airport sector in the next five years for expansion and modification of existing terminals, new terminals and strengthening of runways, among other activities.
  • AAI has come up with a liberalised Flying Training Organisations (FTO) policy wherein the concept of airport royalty (revenue share payment by FTOs to AAI) has been abolished and land rentals have been significantly rationalised.
  • Innovation and Technology –
    • GPS-Aided Geo Augmented Navigation (GAGAN) is India's first Satellite-based Augmentation System. It provides additional accuracy for safety in civil aviation and has expansion capability for seamless navigation services across geographies.
    • No Objection Certificate Application System (NOCAS) streamlines the online process of timely NOC for height clearances of buildings around airports.
  • Ministry of Civil Aviation and Ministry of Health & Family Welfare has mandated contactless self-declaration at Air Suvidha Portal to ensure the smooth passage of international travellers arriving in India.
  • Ministry of Ports, Shipping & Waterways has signed an MoU with Ministry of Civil Aviation for development of Non Scheduled/Scheduled operation of Sea Plane Services within the territorial jurisdiction of India under RCS – UDAN scheme.
  • AAI is constructing a Greenfield Airport in Hollongi with an estimated cost of INR 645 crore, that will handle 200 passengers during peak hours with the aim to increase air connectivity to the capital city of Arunachal Pradesh.
  • In a major boost to Government’s “Make in India” Initiative, Airports Authority of India (AAI), under its R&D initiative, has entered into an agreement with Navratna Defence PSU Bharat Electronics Limited (BEL) for the joint, indigenous development of systems for air traffic management and surface movement of aircraft at airports in the country which were hitherto being imported.
  • Gwalior Airport to get new Terminal Building, ancillary Buildings, Car Parking  for the cost of INR 446.12 crore.
  • The Ministry of Civil Aviation plans and commits to construct 34 new airports taking the total number of airports to 100 new airports in India with 1,000 new routes under UDAN RCS scheme by the year 2025.
  • There are 49 air ambulances (Aeroplane and helicopter) operating under Aero Medical Transportation (AMT) by 19 non-scheduled operators in the country. The state-wise split of air ambulances is as follows: Delhi (39), Gujarat (1), Kerala (2), Maharashtra (5), Odisha(1) and West Bengal (1). Around 4100 patients have hired ambulances during the last three years. 
  • First Flying Training Organization for North Eastern Region is inaugurated in Lilabari, Assam with the aim to train pilots within the country.
  • 14 AAI Airports are now equipped with Ambulifts to facilitate flyers with reduced mobility under the Accessible India Campaign (Sugamya Bharat Abhiyan) of Government of India. 
  • The Ministry of Civil Aviation and Govt. of Himachal Pradesh signed MoU for development of a Green Field Airport in Nagchala, Mandi District of Himachal Pradesh at an estimated cost of INR 900 crore excluding the cost of land with the aim to have list mile connectivity in Himachal Pradesh.
  • GOI aims to establish 33 new domestic cargo terminals by 2024-2025 which will allow cargo sector to flourish and grow.
  • Jabalpur Airport to get New Terminal Building with enhanced capacity to handle 500 passengers during peak hours and reflection of local art & culture.
  • AAI is constructing New Integrated Terminal Building at the Gateway to the pristine islands of Andaman &Nicobar, Veer Savarkar International Airport, Port Blair due to the surge in the passenger traffic at an estimated cost of around INR 707.73 Crore.
FDI Policy
  • Airports
    • 100% FDI allowed under automatic route for both greenfields as well as brownfield projects.9
  • Air Transport Services10
    • Scheduled air transport service/ domestic scheduled passenger airline/ regional air transport service: Up to 49% allowed under the Automatic route beyond which Government approval is required.
    • Non-scheduled air transport services and helicopter services, seaplane services which require DGCA approval: 100% FDI allowed under the Automatic Route.
  • Other Services Under the Civil Aviation Sector11
    • Ground handling services, maintenance, repair and overhaul services, flying institutes, technical training institutions: 100% FDI allowed under the Automatic Route.
  • The cumulative FDI equity inflow in the Air Transport (including Air Freight) is USD  3,175.96 mn during the period from April 2000 to December 2021.  29

Read more about Foreign Direct Investment Policy in India >

Production Linked Incentive (PLI) Scheme

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme  for drones and drone components to catalyse super-normal growth in the upcoming drone sector.

Financial Outlay- INR 120 crore

For more details on PLI Schemes, Click Here

Sector Policy

LIFELINE UDAN24

  • UDAN (Ude Desh ka Aam Nagrik) scheme was launched to transport experts and equipment to every corner of the country (NER, hilly and island states).
  • Under Udan – Work has been initiated to connect

- 98 unserved/underserved
- 33 Helipads
- 12 Water Aerodromes

RCS- UDAN24

  • RCS-UDAN was launched to Promote air connectivity to unserved and underserved airports in Tier-II and Tier-III cities to stimulate regional growth and provide affordable air travel to the citizens.
  • AAI has awarded 948 valid routes to Selected Airline Operators (SAOs) across the length and breadth of the country involving 154 RCS airports including 14 water aerodromes and 36 helipads.
  • Selected Airline Operators(SAOs) have operationalized 415 RCS routes under the Scheme as on date (27.03.2022), involving 66 airports including 2 water aerodromes and 8 helipads.
  • Out of the total routes that the government has connected which had no mention on the aviation map of the country, 100 routes are awarded in North East alone, & 50 are already operational.  
  • Under UDAN Scheme more than 900 new routes have been approved, 350 routes already functional. More than 50 new airports or those which were not in service earlier, have been made operational.
  • 15 airports are operational in 2021 from only 6 in 2014 in North East Region of India.
  • 34 routes have been operationalized, awarded under round 1, 2 and 3 / Tourism RCS. These 34 RCS routes provide connectivity to 4 unserved (Jharsuguda, Mysore, Kolhapur and Jalgaon) and 4 unserved (Gwalior, Belgaum, Durgapur and Shillong) airports connecting 10 served (Raipur, Bhubaneswar, Kolkata, Bangalore, Mumbai, Hyderabad, Goa, Kochi, Rajahmundry and Vizag) airports under the scheme.
  • Daily flight between the Indore-Gondia-Hyderabad route under RCS-UDAN scheme is flaged off with the aim to connect Gondia with a scheduled commercial flight to other metro cities. 
  • NABH Nirman announced in 2018-19 Union Budget, aims to expand airport capacity by more than five times to handle a billion trips in a year. The expansion is planned to be funded by leveraging the balance sheet of the Airports Authority of India.13
  • Secure Application for the Internet (SAI) - Indian Army has developed “Secure Application for the Internet (SAI)” for a simple and secure messaging application.  The application supports an end to end secure voice, text and video calling services for Android platforms over the internet. The application has been vetted by CERT-in empanelled auditor and Army Cyber Group.19
  • Initiatives for Maintenance Repair and Overhaul (MRO) services:14
    • The tools and tool-kits used by the MRO have been exempted from Customs duty. The exemption shall be based on the list of tools and tool kits certified by the Directorate General of Civil Aviation (DGCA) approved Quality Managers of aircraft maintenance organisations.
    • MROs were required to provide proof of their requirements of parts or orders from their client airlines. The process for the clearance of the parts has been brought in line with that of the tool kits for one-time certification by DGCA approved Quality Managers in MROs.
    • Restriction of one year for utilization of duty-free parts has been extended to three years to enable economies of scale.
    • To allow the import of unserviceable parts by MROs for providing exchange/ advance exchange, the concerned notification has been revised to enable the advance export of serviceable parts.
    • Foreign aircraft brought to India for MRO work will be allowed to stay for the entire period of maintenance or up to 6 months. For a stay beyond 6 months, DGCA's permission will be required. 
  • India to become a hub for MRO Airframe. There is an investment of 2 hanger base/heavy maintenance facility for narrowbodies aircraft tied up at Kochi Airport by private MRO.23 
  • 168 routes awarded during the year under UDAN 4.1.
  • Approximately 86.05 lakhs passengers have travelled on UDAN flights since its commencement till 9th January 2022.

International Air Connectivity Scheme (IACS)

  • The Ministry of Civil Aviation has launched International Air Connectivity Scheme (IACS) scheme (International Ude Desh ka Aam Nagrik(UDAN) with an objective to enhance air connectivity from certain States of the country with selected international destinations to promote socio-economic growth. 
  • The State Government of Assam, Manipur and Tripura have identified routes connecting Guwahati, Imphal and Agartala with selected international destinations viz. Bangkok, Dhaka, Kathmandu, Yangon, Hanoi, Mandalay, Kunming & Chittagong. 

Krishi Udaan27 - Airlifting agri-produce for better value realisation for farmers:

  • The total tonnage of agri-perishables handled in the 12th month of FY 2020-21 ending on 31 March 2021 was 18,962 MT.
  • Krishi UDAN 2.0 is released on 27th October 2021 - lays out the vision of improving value realization through better integration and optimization of Agri-harvesting and air transportation and contributing to Agri-value chain sustainability and resilience under different and dynamic conditions.
  • The scheme was focusing on 25 airports of NER, Hilly and Tribal region namely Agartala, Agatti, Barapani, Dehradun, Dibrugarh, Dimapur, Gaggai, Imphal, Jammu, Jorhat, Kullu (Bhuntar), Leh, Lengpui, Lilabari, Pakyong, Pantnagar, Pithoragarh, Port Blair, Raipur, Ranchi, Rupsi, Shimla, Silchar, Srinagar and Tezu.
  • Subsequently, other 28 Airports of AAI, namely, Adampur (Jalandhar), Agra, Amritsar, Bagdogra, Bareilly, Bhuj, Chandigarh, Coimbatore, Goa, Corakhpur, Hindon, Indore, Jaisalmer, Jamnagar, Jodhpur, Kanpur (Chakeri), Kolkata, Nasik, Pathankot, Patna, Prayagraj, Pune, Rajkot, Tezpur, Trichy, Trivandrnm, Varanasi and Yisakhapatnam have been included in the Scheme.
  • Under the scheme, full waiver of Landing, Parking, TNLC, and RNFC charges for Indian freighters and P2C has been implemented at 25 airports from NER, Hilly and Tribal region and 28 airports from remaining parts of the country.
  • 29 States covered under the Krishi Udan 2.0 Scheme.
  • 53 airports are included under Krishi Udan Scheme
  • Krishi Udan Scheme is a convergence scheme where eight Ministries/Departments namely Ministry of Civil Aviation, Department of Agriculture & Farmers' Welfare, Department of Animal Husbandry and Dairying, Department of Fisheries, Ministry of Food Processing Industries, Department of Commerce, Ministry of Tribal Affairs, Ministry of Development of North-eastern Region (DoNER) would leverage their existing schemes to strengthen the logistics for transportation of Agri-produce. 
  • A total of 1,08,479 Metric Tonne perishable cargo (International + Domestic) was handled in Financial Year 2021-22 (till 28 February 2022) in comparison to 84,042 Metric Tonne handled in Financial Year 2020-21 at AAI airports.

National Air Sports Policy (NASP 2022)

  • GOI aims to finalise National Air Sports Policy (NASP 2022) and constitute Air Sports Federation of India (ASFI)  to make India a global hub for air sports. 
  • Air sports like aerobatics, aero modelling, amateur-built and experimental aircraft, ballooning, drones gliding, hang gliding are to be promoted under NASP.

Small Aircraft Sub-Scheme:

  • Primary objective is to facilitate and stimulate regional air connectivity by creating a growth-oriented framework with a specific focus on operations through small aircrafts (including seaplanes). The Scheme intends to facilitate creation of an ecosystem for small aircraft operations in the country by providing the framework necessary for bringing together relevant stakeholders such as States, airlines, airport operators and policy makers to collaborate towards the success of this initiative.

Government policies related to drones in the country are: 

  • Liberalised Drone Rules, 2021
  • Drone Airspace Map for opening up nearly 90% of Indian airspace as a green zone for drone flying up to 400 feet
  • Production-Linked Incentive (PLI) scheme for drones
  • UAS Traffic Management (UTM) Policy Framework 
  • Monetary grant program for the purchase of agricultural drones 
  • Drone certification scheme
  • Drone import policy that aims at banning import of foreign drones and freeing up import of drone components
  • Drone (Amendment) Rules, 2022 abolishes the requirement of a drone pilot licence.  The remote pilot certificate issued by a DGCA-authorised drone school is adequate for operating drones.

Explore Government policies/schemes in the Aviation sector >

 

Financial Support

UNION BUDGET 2022-23

  • The total budgetary allocation for FY 2022-23 towards the  Ministry of Civil Aviation is INR 10,667 cr.

MRO, ground handling, cargo and Aviation Turbine Fuel (ATF) infrastructure facilities collocated at an airport, including heliport licensed by DGCA, are covered under the ‘harmonised list of infrastructure’ in the National Civil Aviation Policy 2016. This makes them eligible to get the benefits offered for the infrastructure sector under the Policy. The Regional Connectivity Scheme under the Policy provides for following financial support:15

  • The revival of airstrips/ airports as No-Frills Airports at an indicative cost of USD 7.1 Mn to USD 14.3 Mn.
  • Demand-driven selection of airports/ airstrips for revival in consultation with State Governments and airlines
  • Viability Gap Funding (VGF) to airline operators
  • Reduced Service Tax on tickets (on 10% of the taxable value) for 1 year initially
  • Reduced Excise Duty at 2% on ATF picked at RCS airports.
Investment Opportunities
  • Indian carriers are projected to increase their fleet size to 1,100 aircraft by 2027.18
  • Demand for MRO facilities is increasing in India due to consistent double-digit growth in the aviation sector.
  • Investment opportunities worth USD 3 Bn in greenfield airports under PPP mode at Navi Mumbai (Maharashtra) and Mopa (Goa).
  • For the development of the aviation industry in the North-East States, AAI plans to develop Guwahati as an inter-regional hub. It also plans to develop Agartala, Imphal and Dibrugarh as intra-regional hubs.
  • Indian airports are emulating the Special Economic Zone (SEZ) Aerotropolis model to enhance revenues. The model focuses on revenues from retail, advertising, vehicle parking, security equipment and services.
  • AAI has taken up developmental projects worth around INR 25,000 crores over the next five years for expansion and modification of existing terminals, new terminals, expansion or strengthening of existing runways, aprons, air navigation services, control towers, technical blocks etc.
  • Three Public Private Partnership (PPP) airports at Delhi, Hyderabad and Bengaluru have undertaken developmental projects to the tune of INR. 30,000 Crores by 2025.
  • GOI's vision is to make India one of the top air sports nations by 2030. The mission is to provide a safe, affordable, accessible, enjoyable and sustainable air sports ecosystem in India.
  • Noida International Greenfield Airport at Jewar, Uttar Pradesh will bring about all-around development of the industrial infrastructure in the region, increase employment opportunities and encourage manufacturing and export.

 

Explore projects to invest in Aviation sector >

Foreign Investors
  • Airbus (France)
  • Boeing International Corporation (US)
  • AirAsia (Malaysia)
  • Rolls Royce (UK)
  • Frankfurt Airport Services Worldwide (Germany)
  • Honeywell Aerospace (US)
  • Malaysia Airports Holdings Berhad (Malaysia)
  • GE Aviation (US)
  • Airports Company South Africa Global (South Africa)
  • Alcoa Fastening Systems Aerospace (US)
  • Singapore Airlines (Singapore)
  • Etihad Airways (UAE)
  • Fairfax (London)
Agencies
Sources
  1. “Industry Statistics Fact Sheet- December 2019,” IATA, https://www.iata.org/en/iata-repository/pressroom/fact-sheets/fact-sheet---industry-statistics/
  2. “INDIA’S AIR TRANSPORT SECTOR,” IATA, https://www.iata.org/publications/economics/Reports/India-aviation-summit-Aug18.pdf
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  4. Union Budget Speech 2020-21, https://www.indiabudget.gov.in/doc/Budget_Speech.pdf 
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  9. “SECTOR SPECIFIC CONDITION FOR FDI,” Invest India, https://www.investindia.gov.in/foreign-direct-investment
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  12. “Cabinet approves leasing out six airports,” Ministry of Civil Aviation, PIB, http://pib.nic.in/PressReleseDetail.aspx?PRID=1561472
  13. “Nabh Nirman initiative announced to expand Airport Capacity,” Ministry of Finance, PIB, http://pib.nic.in/PressReleaseIframePage.aspx?PRID=1518555
  14. “MRO Facilities for Aviation Sector,” Ministry of Civil Aviation, PIB, http://pib.nic.in/newsite/PrintRelease.aspx?relid=160226
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  17. PIB, https://pib.gov.in/PressReleasePage.aspx?PRID=1666421
  18. PIB, https://pib.gov.in/PressReleseDetailm.aspx?PRID=1667654
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  20. Ministry of Civil Aviation, https://www.civilaviation.gov.in/sites/default/files/Monthly-Summary-Sep-2020.pdf
  21. Monthly Achievement Report, https://www.civilaviation.gov.in/sites/default/files/Monthly-Summary-Sep-2020.pdf
  22. PIB , https://www.pib.gov.in/PressReleasePage.aspx?PRID=1671442
  23. Ministry of Civil Aviation, https://www.civilaviation.gov.in/sites/default/files/Monthly_Summary%20_Oct_2020.pdf
  24. Ministry of Civil Aviation, https://www.civilaviation.gov.in/sites/default/files/PRESS_CONFERENCE_29_12_2020.pdf
  25. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1688549
  26. Monthly Achievement Report,  https://www.civilaviation.gov.in/sites/default/files/Monthly-Summery-for-the-month-of-April-2021.pdf
  27. Monthly Achievement Report, https://www.civilaviation.gov.in/sites/default/files/Monthy-Summary-January-2021.pdf
  28. Monthly Achievement Report, https://www.civilaviation.gov.in/sites/default/files/Monthly-Summery-for-the-month-of-April-2021.pdf
  29. Factsheet on FDI - April 2000 to December 2021, Department for Promotion of Industry and Internal Trade, https://dpiit.gov.in/sites/default/files/FDI%20Factsheet%20December%2C%202021.pdf

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