At least 8-9 airports to be leased shortly in next round: Scindia
AVIATION & AIRPORTS

At least 8-9 airports to be leased shortly in next round: Scindia

Civil Aviation Minister Jyotiraditya Scindia told the media that at least 8-9 more airports will be leased shortly in the next round.

Of the massive Rs 62,000 crore debt on the books of Air India when it was handed over to the Tatas, the Government of India (GoI) has closed its part of Rs 47,000 crore by paying off all the banks involved in it.

The Tatas took over Rs 15,300 crore of debt where they have since renegotiated terms and refinanced it by getting in new lenders.

Scindia said that the Tatas disbursed Rs 2,700 crore in cash and took over Rs 15,300 crore of the airlines' debt. We have paid the balance amount of Rs 47,000 crore to all the lenders. The deal is now finished.

The airline's total debt stood at Rs 61,562 crore, out of which about Rs 47,000 crore was transferred to Air India Assets Holding Limited (AIAHL) on August 31, 2021. The airline also had around Rs 15,000 crore surplus liabilities towards unpaid fuel bills and other operation creditors.

Scindia said that Tatas are very enthusiastic about their turnaround plans with 141 aircraft out of India's total of 715 aircraft. He assumed that this fleet size in India would double within the following five years as all the airlines, including newbies Jet Airways and Akasa Air, have enormous rollout plans. Scindia brimming with ideas for the aviation sector is considering new policies which make the system more organised and equally more dynamic.

The leasing will garner Rs 904 crore revenues per year for Airports Authority of India (AAI) as a lease fee for the first round of six airports, and around Rs 2,322 crore has already reached government accounts in this case.

Along the same lines, the minister is excited with the response he has got on call for reducing Value-added tax (VAT) on aviation turbine fuel (ATF).

Scindia asked the chief ministers to decrease VAT and found that as many as 12 CMs and an LG have come forward with cuts to increase connectivity and revenue. Andhra Pradesh and Kerala have decreased VAT, and there is a 15% increase in connectivity in a quarter.

J&K has decreased VAT from 26% to 1%, and the number of aircraft landing there and refuelling has increased by 360%. This reform effort will only broaden and deepen the aviation sector in India, Scindia said.

Scindia's next significant play is his ambitious drone policy, where he averred that 16-18 indigenous startups with cutting-edge technology would be at the forefront of change.

Image Source

Also read: Tata group to take over Air India by this weekend

Civil Aviation Minister Jyotiraditya Scindia told the media that at least 8-9 more airports will be leased shortly in the next round. Of the massive Rs 62,000 crore debt on the books of Air India when it was handed over to the Tatas, the Government of India (GoI) has closed its part of Rs 47,000 crore by paying off all the banks involved in it. The Tatas took over Rs 15,300 crore of debt where they have since renegotiated terms and refinanced it by getting in new lenders. Scindia said that the Tatas disbursed Rs 2,700 crore in cash and took over Rs 15,300 crore of the airlines' debt. We have paid the balance amount of Rs 47,000 crore to all the lenders. The deal is now finished. The airline's total debt stood at Rs 61,562 crore, out of which about Rs 47,000 crore was transferred to Air India Assets Holding Limited (AIAHL) on August 31, 2021. The airline also had around Rs 15,000 crore surplus liabilities towards unpaid fuel bills and other operation creditors. Scindia said that Tatas are very enthusiastic about their turnaround plans with 141 aircraft out of India's total of 715 aircraft. He assumed that this fleet size in India would double within the following five years as all the airlines, including newbies Jet Airways and Akasa Air, have enormous rollout plans. Scindia brimming with ideas for the aviation sector is considering new policies which make the system more organised and equally more dynamic. The leasing will garner Rs 904 crore revenues per year for Airports Authority of India (AAI) as a lease fee for the first round of six airports, and around Rs 2,322 crore has already reached government accounts in this case. Along the same lines, the minister is excited with the response he has got on call for reducing Value-added tax (VAT) on aviation turbine fuel (ATF). Scindia asked the chief ministers to decrease VAT and found that as many as 12 CMs and an LG have come forward with cuts to increase connectivity and revenue. Andhra Pradesh and Kerala have decreased VAT, and there is a 15% increase in connectivity in a quarter. J&K has decreased VAT from 26% to 1%, and the number of aircraft landing there and refuelling has increased by 360%. This reform effort will only broaden and deepen the aviation sector in India, Scindia said. Scindia's next significant play is his ambitious drone policy, where he averred that 16-18 indigenous startups with cutting-edge technology would be at the forefront of change. Image Source Also read: Tata group to take over Air India by this weekend

Next Story
Infrastructure Urban

Mount Invests Rs 250 Cr, Adds PUF & PEB Plants, 400+ Jobs

TUMKUR, Karnataka, January 8, 2025 - Mount Roofing & Structures Private Limited, one of India's  fastest-growing manufacturers in PUF and a leading solutions provider across Pre-Engineered Building  (PEB) and Polycarbonate sheets, simultaneously inaugurated its second fully automated continuous  Sandwich Panel manufacturing line and a new PEB manufacturing plant at its integrated campus in  Tumkur." The milestone expansion, part of a total investment of INR 250 crores, marks a significant  advancement in the company's commitment to engineered performance, manu..

Next Story
Infrastructure Urban

Titan Intech Strengthens UltraLED Push With Global LED Veteran

Titan Intech has announced the induction of global LED industry veteran Su Piow Ko to its Board of Directors, marking a strategic step in strengthening its UltraLED Displays roadmap and building globally competitive LED display solutions from India.The appointment aligns with Titan Intech’s ambition to position India as a hub for advanced, high-quality LED display manufacturing. With an increased focus on UltraLED Displays, the company aims to enhance technical governance, raise manufacturing standards and expand its presence across global markets.Su Piow Ko brings over three decades of inte..

Next Story
Infrastructure Urban

Dun & Bradstreet Flags New Growth Engines in India 2026 Outlook

Dun & Bradstreet has released its India 2026: D&B’s Perspective report, projecting a stable macroeconomic environment underpinned by fresh opportunities for productivity-led and inclusive growth. The report outlines how India’s next growth phase will be driven by digitised logistics, trusted data ecosystems, clean energy and rising city vitality.According to the outlook, India’s GDP growth is expected to reach around 6.6 per cent by FY2027, supported by resilient consumer demand and sustained public investment. Manufacturing is seen entering a new phase, moving beyond scale towar..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App