The India Infrastructure Finance Company Limited (IIFCL) has granted loans totaling Rs 8,800 crore to support the growth and development of airports and civil aviation infrastructure in India. The company is a significant contributor to airport financing in India, having provided support for airport projects totaling approximately Rs 74,000 crore.
India’s airport sector has experienced significant growth, thanks to increased investments from both the government and private sector. This growth can be attributed to several factors, including the rise in middle-income households, infrastructure development at major airports, and a favourable policy framework. Due to expansion efforts, the passenger handling capacity is projected to increase from the current 350 million per year to 500 million per year by the end of the current fiscal year. Furthermore, it is anticipated to reach 2 billion by the year 2047.
The government’s objective is to enhance the civil aviation industry within the country, which necessitates substantial investment to accomplish this objective. The IIFCL intends to provide ongoing support for the advancement of high-quality airport infrastructure and will actively seek out possibilities for financing new airport projects as well as maintenance, repairs and overhaul (MRO) facilities under the PPP (Public Private Partnership) mode by way of term loan, subscription to bonds, refinancing, or credit enhancement etc., The airport has a beneficial economic impact and a significant employment multiplier.