India Infrastructure Finance Company Limited (IIFCL) has approved loans worth Rs 8,800 crore for airports and civil aviation infrastructure development in the country, according to Managing Director PR Jaishankar.
Jaishankar noted that the government has set an ambitious target for the development of the civil aviation sector in India, which requires significant investment.
\”To date, IIFCL has approved loans of about Rs 8,800 crore, with a disbursement of around Rs 4,000 crore, for airport projects,\” Jaishankar told PTI.
The company is a major financier of airports in India and has supported projects with a total budget of approximately Rs 74,000 crore. Jaishankar added that IIFCL is present in almost all major airports in the country.
India has experienced significant growth in the airport sector in recent years, with increased investments from both the government and the private sector. This growth is mainly due to the rising number of middle-income households, infrastructure development at leading airports, and a supportive policy framework.
As a result of this expansion, the passenger handling capacity is expected to increase from 350 million per annum to 500 million per annum by the end of the current financial year, and to 2 billion by 2047.
Jaishankar stated that IIFCL will continue to support the development of world-class airport infrastructure in India and explore opportunities to fund greenfield airport projects, as well as maintenance, repairs, and overhaul (MRO) facilities under the PPP mode through various means such as term loans, bond subscriptions, refinancing, and credit enhancement.
Highlighting the importance of the airport sector, Jaishankar emphasized its potential to have a significant positive impact on the economy, with an economic multiplier of 3.1 and an employment multiplier of 6.
In order to meet the growing demand for air travel in India, Jaishankar stated that it is crucial to increase the capacity of airport infrastructure. The National Infrastructure Pipeline (NIP) has envisaged a capital expenditure of approximately Rs 91,000 crore for the civil aviation sector in the five years leading up to FY25.
Get the latest stock market updates here. For other news related to business, politics, tech, sports, and auto, visit Zeebiz.com.