Newstrack

Private firms keen on building cargo airports

Atreyee Dev Roy - New Delhi

The private sector is showing huge interest in the merchant airport policy, being prepared by the civil aviation ministry for building dedicated cargo airports to boost logistics chain in the country.

In fact, companies such as Infrastructure Development Finance Company (IDFC) have already received several requests from private companies to look into the possibility to set up and operate merchant airport. Such cargo specific small airports can also be built with even a small investment of Rs 200 crore.

Airport developers in the private sector are also tying up with realty firms to help them acquire land. The government, as part of the policy, has already agreed to allow 100 per cent FDI in merchant airports.

"Merchant airports can be developed for improving logistics in the country and we are already been asked to look into three such projects. But such projects have to be simultaneously supplied with seamless air and rail connectivity for seamless distribution and transfer," IDFC public private partnership initiative head Shailesh Pathak said.

A small cargo airport will, however, require a minimum of a 1,000 acre and land acquisition from the state governments can be a major challenge. According to Pathak, there are around 20 to 30 airstrips in every state, which are under the purview of the state government.