Regional Airport-Holdings International Limited (RAHI), a private airport developer, has announced that it will invest around Rs 3,000 crore in over 15 aviation infrastructure and services projects across the country over the next five years, the company said in a press release.
“With India poised to be the third largest aviation market by the end of this decade, the aviation revolution has already begun. The Centre has ambitious plans for 500 airports by 2020. It is estimated that Indian aviation will see an investment of about $120 billion over the next few years. There is a need for infusion of capital into the aviation sector to keep up with the booming demand. RAHI will work in tandem with the government’s plans and fuel growth in the sector,” said Sandeep Mendiratta, Head - Aviation Business - ITNL & Member of the Board - RAHI.
RAHI is a joint venture (JV) between IL&FS Transportation Networks Limited (ITNL) - a player in transportation infrastructure development and finance; and Comet Infra-Developments Private Limited (CIDPL) - an infrastructure development group. This JV is currently developing airports in Shimoga and Gulbarga in Karnataka, under the Public-Private Partnership model, both of which will be operational by mid-2012. The concession period for both projects is 30 years, extendable by an additional 30 years.
“RAHI has a three-pronged strategy for regional aviation, specifically in Tier-II and Tier-III cities in India. We will not only develop airports and associated infrastructure but also have our own regional airline that will serve Tier-II and Tier-III cities,” said Umesh Kumar Baveja, Director — CIDPL & Founder-Chairman, RAHI.
RAHI expects to operationalise its regional airline in tandem with the two airports becoming operational by mid-2012. Discussions have begun with aircraft manufacturers to source appropriate aircraft for the routes RAHI will ply. RAHI is building up its operational team, distinct from the aviation infrastructure team that is presently progressing the airport development projects, he added.