4 private airports need Rs 27k crore for expansion

A Crisil report said four major private airports in the country will require an investment of Rs 27,000 crore in expanding the existing capacity, which has reached near optimum level, by 2021.

The four private airports — New Delhi, Mumbai, Hyderabad and Bengaluru — cater to nearly 55 per cent of the country’s total air traffic.

These airports are operating at near-full capacity and will need to spend heavily on expansion through 2021, said the report by the rating outfit.

“Because of surging footfalls and high capacity utilisation of over 90 per cent, we estimate the four airports would need to invest Rs 27,000 crore for expansion,” Crisil Ratings President Gurpreet Chhatwal said.

Yet, their credit quality will remain healthy because of business model strength backed by robust traffic growth and predictable cash flows under a regulated tariff framework, it said.

Image Credit : i10.dainikbhaskar.com

Research Desk

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