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The Airports Authority of India has outlined a capital investment plan of INR 15,000 crore to modernise air traffic control automation, navigation systems, and technical infrastructure across its airport network by the end of 2028. The roadmap follows a detailed assessment of airport systems, including their age and remaining operational life. The investment will be funded entirely through internal accruals. AAI expects to report revenue of INR 22,000 crore in the current financial year, matching last year's figure, which included a one-time gain.
The Airports Authority of India has announced a major infrastructure upgrade plan aimed at preparing its air traffic control towers and navigation systems for future aviation demands. The state-run airport operator plans to invest INR 15,000 crore by the end of 2028 to modernise automation systems, navigational aids, and other critical technical infrastructure across its network. Advertisement
AAI chairman Vipin Kumar, speaking on the sidelines of the Wings India 2026 event, said the authority has conducted a detailed review of every airport, air traffic control tower, and technical power system. The assessment focused on identifying existing equipment, evaluating how old the systems are, and determining their remaining operational life. Based on these findings, a phased investment roadmap has been prepared to address gaps and ensure long-term reliability.
According to Kumar, tenders for several components of the upgrade programme have already been floated, while others are currently under various stages of preparation. He said the objective is to ensure that all ATC automation and navigation systems meet global benchmarks by the end of the implementation period.
On the financial front, AAI is expected to record revenues of around INR 22,000 crore in the current financial year, similar to the previous year. Kumar noted that airport operators typically invest close to INR 8,000 crore annually as capital expenditure. He also pointed out that last year's revenue included a one-time benefit of around INR 2,000 crore, and therefore the current year's revenue projection should be seen as an underlying improvement.
The chairman clarified that the entire INR 15,000 crore investment will be funded through internal accruals, without relying on external borrowing.
Source PTI
FAQ
Q1. What investment plan has the Airports Authority of India announced?
The Airports Authority of India (AAI) has announced a capital investment plan of INR 15,000 crore to modernise air traffic control (ATC) automation, navigation systems, and technical infrastructure across its airport network by the end of 2028. The initiative aims to upgrade critical aviation systems to meet future traffic growth and align with global operational standards.
Q2. What areas will this investment focus on?
The proposed investment will focus on modernising ATC automation systems, navigation aids, technical power systems, and other essential airside infrastructure. These upgrades are intended to improve operational efficiency, enhance safety, and ensure long-term reliability of aviation services across AAI-managed airports and ATC towers.
Q3. How was the upgrade roadmap prepared?
AAI conducted a detailed assessment of every airport, air traffic control tower, and technical system under its management. The review evaluated existing equipment, the age of systems, and their remaining operational life. Based on this analysis, a phased investment roadmap was developed to systematically address gaps and future requirements.
Q4. What is the current status of implementation?
According to AAI Chairman Vipin Kumar, tenders for several components of the modernisation programme have already been floated, while others are at different stages of preparation. The authority aims to complete the full upgrade cycle within the planned timeline, ensuring all systems meet international benchmarks by 2028.
Q5. How will AAI fund this INR 15,000 crore investment?
The entire investment will be funded through internal accruals, without any reliance on external borrowing. This reflects AAI's strong financial position and its ability to support large-scale capital expenditure while maintaining fiscal discipline.
Q6. What is AAI's current financial outlook?
AAI is expected to report revenues of around INR 22,000 crore in the current financial year, broadly in line with the previous year. However, last year's figure included a one-time gain of approximately INR 2,000 crore. As airport operators typically invest about INR 8,000 crore annually in capital expenditure, the current revenue projection indicates stable underlying performance and sustained investment capacity.
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