The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has approved the proposal for revival of 50 un-served/under-served airports/airstrips of the State Governments, Airports Authority of India (AAI) and Civil enclaves in three financial years starting from 2017-18. The total cost of the project is estimated to be Rs. 4500 crore. 15 airports/airstrips each would be revived during 2017-18 and 2018-19 each while 20 airports/airstrips would be revived during 2019-20. With the plan, the government is looking to enhance air connectivity to small cities and towns while the revival of such airports and airstrips would be “demand driven”.
As an outcome of the approval, small cities/towns shall be connected on commencement of operation of flights to under-served/un-served airports. It will further boost the economic development in these areas as well as surrounding areas in terms of job creation and related infrastructure development. The Revival of airstrips/airports will be ‘demand driven’, depending upon firm commitment from airline operators as well as from the State Governments for providing various concessions as Airports will be developed without insisting on financial viability. The announcement for making adequate provisions for revival of unserved and underserved airports was made by the Finance Minister in Union Budget 2016-17.