"IIFCL Greenlights 8,800 Crore Rupee Loans to Bolster Civil Aviation Infrastructure"

India Infrastructure Finance Company Limited (IIFCL) has given the green light for loans amounting to Rs. 8,800 crore to support the development of airports and civil aviation infrastructure within the country, according to a report by PTI, citing Managing Director PR Jaishankar.

The Indian government has set forth ambitious plans to boost the nation's civil aviation sector. To realize these aspirations, substantial investments are crucial, Jaishankar emphasized.

He stated, "So far, the IIFCL has sanctioned loans of about Rs. 8,800 crore with the disbursement of around Rs. 4,000 crore for the development of airport projects."

IIFCL plays a pivotal role as a major financier for airports across India and has provided financial support to airport projects with a combined project outlay of approximately Rs. 74,000 crore. Jaishankar added that IIFCL is actively involved in nearly all major airports throughout the country.

India's airport sector has witnessed substantial growth in recent years, with increased investments from both the government and the private sector. This growth is attributed to the expanding middle-income population, infrastructure enhancements at leading airports, and a supportive policy framework.

As part of this expansion, the passenger handling capacity is anticipated to rise from the current 350 million passengers per annum to 500 million by the end of the fiscal year and further to 2 billion by 2047.

Jaishankar highlighted IIFCL's commitment to supporting the development of world-class airport infrastructure in India. The company aims to explore opportunities for funding greenfield airport projects, as well as maintenance, repair, and overhaul (MRO) facilities through public-private partnerships (PPP) using various financial instruments like term loans, bond subscriptions, refinancing, and credit enhancements.

Emphasizing the significance of the airport sector, Jaishankar pointed out that it has the potential to generate a significant positive impact on the economy, with an economic multiplier effect of 3.1 and an employment multiplier of 6.

To meet the escalating demand for air travel in India, Jaishankar emphasized the need to expand airport infrastructure capacity. According to the National Infrastructure Pipeline (NIP), an estimated Rs. 91,000 crore capital expenditure has been earmarked for the civil aviation sector in the five years leading up to FY25.

ET