Govt okays Rs 4,500 cr project to revive 50 airports, airstrips

Small cities will be connected on commencement of operation of flights to unserved airports

The Cabinet on Monday approved a proposal to revive 50 unserved and under-served airports as well as airstrips at an estimated cost of Rs 4,500 crore.

With the plan, the government is looking to enhance air connectivity to small cities and towns while the revival of such airports and airstrips would be "demand driven".

The proposal was approved by the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi.

"The total cost of the project is estimated to be Rs 4,500 crore. 15 airports/airstrips each would be revived during 2017-18 and 2018-19 each while 20 airports/airstrips would be revived during 2019-20," an official release said.

As many as 50 unserved and under-served airports and airstrips of state governments, Airports Authority of India (AAI) and civil enclaves would be covered.

"Small cities/towns shall be connected on commencement of operation of flights to under-served/unserved airports.

"It will further boost the economic development in these areas as well as surrounding areas in terms of job creation and related infrastructure development," the release said.

While noting that revival plan would be demand driven, the government said it would depend on firm commitment from airline operators as well as the state governments in terms of providing various concessions.

The unserved and under-served airports are to be developed "without insisting on financial viability", the release said.

In the Union Budget, Finance Minister Arun Jaitley had announced plans for making adequate provisions for revival of unserved and under-served airports.

To make flying more affordable, the government has already unveiled the ambitious regional connectivity scheme UDAN ('Ude Desh Ka Aam Naagrik') under which fares are to be capped at Rs 2,500 for one-hour flights.

Other important decisions:

* Proposal on a National Health Policy assuring health services to all deferred 

* Pact on oil storage and management between Indian Strategic Petroleum Reserve and Abu Dhabi National Oil Company of UAE 

* Pact between the National Productivity Council and UAE's Al Etihad Energy Services for services in energy management and conservation 

* Accession to the Customs Convention on International Transport of Goods; to help in faster movement of export goods

* India and UN-Women to sign a deal to support governance institutions from the grassroots to work towards gender equality