Aircraft shortage major bottleneck for expansion of aviation sector in India: Naidu
Bhavnagar (PTI): Civil Aviation Minister K Ram Mohan Naidu on Sunday said India's aviation sector is facing a bottleneck in procurement of new aircraft, citing that while 1,700 new planes are on order, supply chain disruptions mean deliveries may take up to 15 years.
Naidu, who flagged off new flights at Bhavnagar airport in Gujarat, stated that the government is emphasising domestic manufacturing of aircraft through joint ventures with global giants like Embraer, and a partnership with Hindustan Aeronautics Limited (HAL) is already underway to produce the Sukhoi Superjet 100.
The minister remarked that building airports is not difficult once land is made available, but getting aircraft has become a major bottleneck after the COVID-19 pandemic.
He explained that aircraft manufacturing has slowed down worldwide, affecting the speed at which planes are being delivered.
"After COVID-19, there were many difficulties in aircraft manufacturing. There was some disruption in the supply chain. So the speed and scale at which aircraft were supposed to be built have decreased," he said.
He noted that 1,700 orders for aircraft are pending, and it will take up to 15 years for them to arrive.
Naidu said Indian airline operators have placed large orders to meet rising demand, and around 30,000 pilots will be needed in the coming years to operate these aircraft.
"When these aircraft start arriving, it will become easier for the airlines to fulfil the new aspirations and demands for connectivity," he said.
To deal with the shortage, the government is working on speeding up aircraft imports and boosting domestic manufacturing under the 'Aatmanirbhar Bharat' and 'Make in India' initiatives, he said.
The minister said the government has been encouraging global companies to manufacture planes in India through joint ventures.
"We have tied up with Embraer to make aircraft in India. A joint venture has also been done with Hindustan Aeronautics Limited to produce the Sukhoi Superjet 100 in the country," he said, adding that such steps will help solve the problem of aircraft availability in the future.
The minister flagged off a new flight connecting Bhavnagar with Navi Mumbai by IndiGo.
He credited Prime Minister Narendra Modi for expanding the aviation sector and making air travel accessible to citizens.
Since 2014, the number of airports, aircraft and passengers in India has doubled, he said, pointing out that the country's 165th airport was recently inaugurated in Jewar, Noida.
Naidu further said that the government plans to develop 50 airports in the next five years and aims to have more than 350 airports in India by 2047.
Speaking about the Bhavnagar airport, the minister said expansion is needed to allow bigger aircraft to land. The current 1,900-metre runway needs to be extended to 2,400 metres, and 200 acres of land will be required.
"If the state government provides the land, the Centre will carry out the expansion," he said.
Naidu also inaugurated Udan Yatri Cafe at the Rajkot airport and virtually unveiled facilities at 57 other airports.
The minister said that the Rajkot airport will soon get an air cargo terminal and international flight connectivity.
He also said that the inquiry report of the 2025 Ahmedabad plane crash will be released soon.
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Rupee falls 20 paise to 95.43 against US dollar in early trade
Mumbai (PTI): The rupee depreciated 20 paise to 95.43 against US dollar in early trade on Tuesday as market sentiments remained fragile after renewed military exchanges between US and Iranian forces in the Gulf region.
Forex traders said investor anxiety due to instability in the Gulf is causing massive capital flight into safe-haven assets, with the US dollar acting as the primary beneficiary.
Moreover, Brent oil prices is hovering near USD 113 per barrel, maintaining pressure on oil-importing economies like India.
At the interbank foreign exchange market the rupee opened at 95.30 then lost ground to touch 95.43 against the US dollar, in initial trade, registering a fall of 20 paise over its previous close.
Rupee fell 39 paise to close at an all-time low of 95.23 against the US dollar on Monday.
"With oil boiling rupee on Monday fell to a closing low of 95.0875 and this morning the opening was still lower as it becomes more and more vulnerable when dollar index rises due to safe-haven buying and oil prices rise due to the continuous fighting in the Gulf Region," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
The higher oil prices will keep rupee sold off against the dollar as oil companies and FPIs intensify dollar buying, Bhansali added.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 98.51, up 0.15 per cent.
Brent crude, the global oil benchmark, was trading lower by 1.07 per cent at USD 113.22 per barrel in futures trade.
"Market sentiments remained fragile after renewed military exchanges between US and Iranian forces when Iranian forces launched fresh attacks in the Gulf as both sides sought to assert control over the strategic waterway," Bhansali said.
On the domestic equity market front, Sensex declined 361.62 points to 76,907.78 in early trade, while the Nifty dropped 134.90 points to 23,980.60.
Foreign Institutional Investors purchased equities worth Rs 2,835.62 crore on Monday, according to exchange data.
