Uttar Pradesh govt targeting $2 billion investment in civil aviation

The Uttar Pradesh government is targeting private investment of $2 billion (over Rs 16,000 crore) in the civil aviation sector.

Apart from promoting ancillary activities, such as aviation training, aircraft maintenance, and  aero-sports, the proposed investment may be used to develop and upgrade existing airstrips.

“The state is focussing on facilitating the optimum utilisation of existing infrastructure and investment in the strategic areas,” a senior government official said.

Apart from the 14 state-owned airstrips marked for immediate development, the state is taking steps to operationalise 225 routes under the flagship Regional Connectivity Scheme (RCS).

The state plans to upgrade airstrips and infrastructure in a phase-wise manner. “Six airstrips namely Aligarh, Azamgarh, Chitrakoot, Shravasti, Moradabad, and Sonbhadra are being upgraded to handle the flights under the RCS,” he added.

One of the key enablers for the growth of civil aviation is the airstrip policy of the government. The Yogi Adityanath government also claims to provide the best incentive to the private players for the aero MRO (maintenance repair and overhaul) operations.

Moreover, the state has allocated a budget of about Rs 28,000 crore in the current financial year 2024-25 (FY25) for the civil aviation infrastructure for airstrips modernisation, land acquisition, and more.

Uttar Pradesh witnessed a rise of 20 per cent in the number of flyers in FY24, indicating a sharp uptick in aviation growth in leisure and business tourism.

The Yogi government has identified tourism as a thrust area to achieve its ambitious goal.

The government is also promoting helicopter taxis in major tourist hotspots under the public-private partnership (PPP) mode. Last year, UP Tourism signed an agreement with Rajas Aerosports And Adventures to operate heliports for 30 years between Agra and Mathura.

UP has emerged as the most favoured tourist destination, logging a 50 per cent jump in tourist inflow to 480 million in 2023.

While UP leads in domestic tourists, the state is eyeing a greater pie of inbound tourism, which could be achieved with the efforts of all stakeholders, including the government and hospitality players.