The development of greenfield airports is essential for the development of industrial regions (including urban centres) and facilitates significant economic growth.
With a rise in disposable incomes, expanding middle-income groups, and a growth in urbanisation, India’s domestic aviation market is now expanding at par with top aviation markets across the world. However, there is a strain on the current infrastructure, especially in Tier 1 cities, with Indian air traffic increasing significantly. For instance, according to the Delhi Development Authority, Delhi’s annual passenger handling capacity is presently at seventy million with the city’s nearest airport handling about two million passengers daily.
Therefore, the Ministry of Civil Aviation recognised the urgent need to expand and modernise the nation’s aviation network, by developing airports in Tier 2 cities. For the same – to promote regional air connectivity and lower the cost of air travel for the public – the Ministry of Civil Aviation introduced its flagship Regional Connectivity Scheme, or UDAN (Ude Desh ka Aam Nagrik), in October 2016 – based on the review of the National Civil Aviation Policy of 2016.
Also, the Greenfield Airports Policy 2008 governs the development of greenfield airports and provides detailed guidelines, procedures, and steps to be followed. According to the policy, for an airport developer or state government to establish a greenfield airport across the country, a proposal must be submitted in the format outlined to the Ministry of Civil Aviation (MoCA) for two stages of approval: ‘Site Clearance’ followed by ‘In-Principle’ approval.
Greenfield vs Brownfield airports
Greenfield airports are aviation facilities that are constructed entirely from scratch on land that has never been used for aviation. Brownfield airports, on the other hand, are those that are created by upgrading or expanding an existing airport that may or may not be operational. Greenfield airports are being liberalised by the Central Government as they have several advantages over brownfield airports, such as improved connectivity, lower operating costs, and more efficient operations. They also have the benefit of being less expensive to build than brownfield airports, as there are no constraints on retrofitting or upgrading existing facilities.
Owing to the plethora of advantages a greenfield airport holds, the Government of India accorded ‘in-principle’ approval for setting up 21 Greenfield airports across the country to improve connectivity, last year.
Greenfield Airports: A Necessity
Greenfield airports play a significant role in accelerating the urbanisation of the country. The development of greenfield airports is necessitated by the increase in air-traffic demand at the existing airports, the rise in the level of urbanization, and the growth of small towns into bigger cities.
The development of greenfield airports is one of the key enablers for the development of an industrial region (including urban centres) and creates a significant multiplier impact on economic growth. As per an International Civil Aviation Organisation (ICAO) study, the output multiplier and employment multiplier are 3.25 and 6.10, respectively. This suggests that every Rs 100 spent on air transport contributes to Rs 325 worth of benefits and every 100 direct jobs in air transport results in 610 jobs in the economy.
There is a consistent push by the Government of India towards setting up more greenfield airports in the country – with a focus on catering to huge passenger air traffic, increasing connectivity, and connecting rural areas.
Recently, a greenfield domestic airport at Sogane in Shivamogga district has been constructed under the Centre’s UDAN scheme. RITES Ltd., a leading transport consultancy and engineering sector player, prepared the detailed project report (DPR) for this greenfield project. The Shivamogga airport will boost connectivity, commerce, and tourism in the region and will also serve as a catalyst for the local economy, aiding both tourism and trade.
Furthermore, the operationalisation of greenfield airports pins a vast territory on the national aviation map, particularly the northeast, and leads to strong aerial connectivity across the country. The development of such airports also has a positive effect on hospitality, tourism, and the local economy.
A Strategy for Success
According to the latest DGCA data, India’s overall domestic air passenger traffic nearly doubled in January 2023 compared to last year. The government is now proactively supporting the aviation sector to cater to its ever-increasing demand, as the aviation industry is no longer only a sector of the affluent elite. The nation’s transportation industry now not only includes aviation but also recognizes its importance to the creation of jobs and economic prosperity. In a strong positive move, the Airports Authority of India (AAI) and other airport developers have developed new and existing airports to boost the aviation infrastructure.
