Aviation sector can absorb USD 120 billion investment

Thiruvananthapuram (PTI) - Observing that the
aviation sector had a potential to absorb USD 120 billion
investment, Prime Minister Manmohan Singh on Saturday said in
the southern Indian state of Kerala that efforts were on to
create world-class aviation infrastructure across the country
on a mission mode.
The growth of low-cost air travel has given a strong
competition to the railways by making new frequent flyers, he
said while inaugurating the new international terminal
building at the airport here.
"I am told the projected growth of India's aviation
sector has a potential to absorb investment of over USD 120
billion with attendant job creation for lakhs of workers
directly and indirectly," he said.
Emphasising the importance of aviation sector in the
country's economy which was getting integrated to the global
economy, Singh said the government has formulated various
policies to give a boost to this vital sector.
Creation of modern and efficient infrastructure at the
airports to handle passenger volumes of this magnitude
requires huge investment. This creates significant
opportunities and challenges, he said.
A roadmap to modernise the existing airports on a mission
mode to create world-class infrastructure was being
implemented at a fast pace as air transport in the country was
witnessing an unprecedented growth, the Prime Minister said.
While domestic air traffic has tripled, international
traffic to and from India more than doubled in the last seven
years. "An exponential growth in passenger traffic is expected
in this decade as well," he said, adding in recent years it
has become vital for development of trade, industry and
tourism, creating jobs for all sections.
Noting that aviation was earlier considered only for
the affluent, he said, "With the growth of low-cost air
travel, the airlines are now giving strong competition to the
railways and many passengers who earlier used to travel only
by trains today frequently use air flights".
To meet the growing air traffic demand, he said the
policy on airport infrastructure aimed to increase airport
capacity to stay ahead of demand and garner the maximum share
of traffic in the region.
"We wish to make our airport facilities user friendly
and achieve high levels of customer satisfaction. We also seek
to ensure the safety and security of airport operations and
develop multi-modal transport linkages," he said, adding
aviation infrastructure was being modernised through joint
ventures under the private-public partnership model.
Complimenting the Airports Authority of India, he said
the entire investment of the new International Terminal
Building here at a cost of Rs 289 crore (about USD 63 million)
was being met through AAI's internal resources.
Projects like the new terminal and the India's first
International Container Transshipment Terminal at Vallarpadam
which he inaugurated on Friday showed the commitment of the
Centre to develop Kerala as a major transport hub in the
region, he said.