Unveiling PM Modi’s plan to rev up aviation industry in India
In its highly-acclaimed Pragati initiative, the government of India has rapidly revamped redundant organizations and accelerated the construction of pending projects. Another key initiative among the others is long-awaited airport project in Navi Mumbai. Prime Minister Narendra Modi has been headstrong on the Navi Mumbai airport project, and laid the foundation stone for this airport to speed up the erection of the structure.
“In our country, nearly 450 planes are operational. 900 new planes will be bought this year. Aviation sector is moving ahead,” he further said.
It is evident from his speeches that Aviation is the major focus for the government and it is bound to boost the sluggish employment slump. GVK group has been charged with the task to top off the airport at the earliest.
As per the project report announced by GVK, the diversified infrastructure megastar, estimates that the newly built airport will have an enormous capacity to handle 10 million passengers per annum. It also set its own deadline of four years.
After the inaugural ceremony by PM Modi, the challenges obstructing the conclusion of this project were brought up for discussion. It was discovered that the financial backing was a major hiccup. Of all the other estimates one peculiar discussion that took the center-stage was the project cost of the airport. Forming a part of the project report, it was stated that an amount of Rs 6, 000 crore.
To fund the project cost, the combined equity-debt portfolio is brought into the mix. About debt-equity ratio of 4:1 is considered, which makes for Rs 4, 800 cr in debt and 1200 cr in equity financing.
Why has Navi Mumbai gained significance now?
Primarily, the Pragati initiative by the government was inducted to put a conclusive deadline and steadfastly speed up the construction and also bypass inefficiencies. Another critical point that triggered the addition of a second international airport in Mumbai was full traffic-capacity breach in Chhatrapati Shivaji International Airport.
What does this mean for travel industry professionals?
Naturally, the induction of new aircraft to Air-India’s fleet and the erection of a second international airport in Mumbai suggest a strong tide of growth and opportunities for travel industry professionals. It is all the more appetizing for an aspirant because of rapid innovation and dynamic changes in the world of aviation and travel.
For the students who spearhead the change and adapt to the trends are bound to become future leaders. Hence, it is extremely crucial to become trained in the world of aviation and tourism. Because of your condensed wisdom, you should be able to keep your finger in the pulse of the industry.