• India is 9th largest civil aviation market in the world and is projected to be the 3rd largest aviation market by 2020.

• Indian carriers operated 496 aircraft in March 2017 up from 395 in 2014, orders for purchasing 654 aircraft placed. It is expected that Indian carriers will increase their fleet size to reach 800 aircrafts by 2020 .

• Indian scheduled airlines carried more than 10 Crore domestic passengers during FY17 against 6.1 Crore in FY14, recording a CAGR of ~19%.

• Scheduled domestic flight movements during 2016 was 8.2 Lakh as against 7 Lakh movements in FY14 recording 8.2% CAGR. Cargo carried registered over 10% growth to 29.8 Lakh MT in FY16 from 25.3 Lakh MT in FY14

• Liberal FDI policy, attractive incentives, reduced regulatory burdens and improved ease of doing business measures complementing the huge market potential.

Domestic Passenger traffic - Compound Annual Growth Rate (CAGR) – 10.1% (FY 2006-16). International Passenger traffic CAGR – 8.8% (FY 2006-16). ]

• The passenger air traffic in Uttar Pradesh grew by 30% to 6.1 million passengers in the year 2016-17 on Y-on-Y basis and Air cargo traffic was 5.89 MMT (million metric tonnes) during 2016-17 .

• UP is one of the least penetrated air markets with 0.031 per capita air trips as compared to Indian national average of 0.04 trips per capita per annum, 0.3 in China and more than 2 in the USA. This reflects the immense untapped potential in air transport sector in the state.

• Category-III B Instrument Landing System (ILS) – an advanced navigation and landing equipment aiding aircrafts to land under dense foggy conditions, reducing delays, cancellations, and rerouting commissioned at Lucknow airport assuring airlines all weather access to airport. Jaipur & Delhi are the only other CAT IIIB complaint airports in India

• Common User Domestic Cargo Terminal (CUDCT) operationalised at Lucknow airport.

• Low business cost and quality trainable manpower availability skilled at top institutions like Rajiv Gandhi National Aviation University - India’s first aviation university at Amethi, Aeronautical Training Institute (ATI), Lucknow etc.

• Focus sector status, attractive incentives, sector specific policy and improved ease of doing business in the state complementing the huge civil aviation market of the state

Assam provides sample scope for development of Electronics and IT/ITeS sector in the region.

a. Infrastructure

• Lucknow, Varanasi, Allahabad, Gorakhpur, Agra and Kanpur airports in Uttar Pradesh are providing intra-state and inter-state air connectivity. Lucknow airport served 65% of the passenger air traffic demand in Uttar Pradesh followed by Varanasi (32%) and the rest by Allahabad, Gorakhpur, Agra and Kanpur in 2016-17.

• Following is a list of 29 Unserved Airports/ airstrips in UP (as per Annexure 1B of RCS)

Unserved Airports/airstrips in UP
330 Akbarpur 340 Jagatpur 350 Muirpur(Korba) 331 Aligarh
341 Jhansi 351 Phaphamau 332 Bakshi KaTalab 342 Jhingura
352 Pirthiganj 333 Bareilly 343 Kanpur (Chakeri) 353 Rajwari
334 Etawah 344 Kanpur(Civil) 354 Saharanpur (Sarsawa) 335 Faizabad
345 Kanpur (Kalyanpur) 355 Sah-baj-quli 336 Fursatganj IGRUA) 346 Kasia
356 Sardarnagar 337 Ghazipur 347 Lalitpur 357 Shravasti
338 Hindan 348 Madhosingh 358 Sultanpur (Amhai) 339 Iradatganj
349 Meerut

• In addition, following airstrips are being considered for inclusion in RCS as unserved airports/airstrips category

1 Moradabad 4 Paliya (Kheri-Dudhwa)
2 Azamgarh 5 Farrukabad
3 Chitrakoot 6 Rasoolabad (Kanpur Dehat)

• State government is exploring possibility to upgrade 10 airstrips to No-Frills Airports in 10 divisions initially: Meerut, Moradabad, Faizabad, Saharanpur, Jhansi, Chitrakoot, Azamgarh, Aligarh, Sonebhadra (Mirzapur) and Shravasti (Gonda/Devipatan)

• UP is a top tourist destination with aound 213 million domestic travellers (2nd highest in India) and 3.1 million foreign travellers (3rd highest in India) visiting the state in 2016.Out of the top tourist destinations in U.P., only Agra, Varanasi/Sarnath,Kushinagar, Allahabad, Lucknow, Ayodhya/Faizabad, Jhansi, Chitrakoot, Dudhwa (Palia airstrip) have functional airport/ airstrips have functional airstrips/airports – signifying immense potential for investments in other top destinations like Vrindavan, Mathura, Naimisharanya, Chandra Prabha etc.

• The government is considering development of helipads/heliports to connect the tourist destinations like Vrindavan, Mathura, Naimisharanya, Chandra Prabha, Mahoba, Chunar, Deogarh.

• RCS flights can be successfully connected with other parts of the country through airports/ airstrips at Kushinagar, Kanpur, Hindan (Ghaziabad), Palia(Kheri- near Dudhwa National Park).

b. Human Resource–

• With a total population of more than 200 Million, Uttar Pradesh boasts of a labour force of over 70 Million of which over 40 million are non-agricultural labour force

• Commercial pilot license (CPL) courses approved by Directorate of Civil Aviation conducted at Indira Gandhi Rashtriya Uran Academy (IGRUA), Amethi and six private flying training academies, viz. 3 at Aligarh, 1 each at Faizabad, Sultanpur and Kanpur.

• Every year 40 cadets are trained at IGRUA, which is expected to rise to 110 cadets per year after an MoU is signed with Canadian Aviation Electronics (CAE) Inc. The university has also recently started the 1st executive aviation course in the country.

• Diploma courses for AME in Airframe & Engine, avionics, helicopter operations and Power Plant at Aeronautical Training Institute (ATI), Lucknow of the state government. The ATI, Lucknow has an annual intake of 90 students per year.

• Human Resource Support under Civil Aviation Policy 2017 –

  • • State government to promote aviation related courses in premier institutes / universities in U.P. e.g. IITs, NIT and universities at Lucknow, Allahabad, Aligarh, Agra, BHU, Rohilkhand, Meerut etc. to generate skilled work force and professionals for civil aviation sector.
  • • State government to facilitate the training of aviation professionals by (a) extending the scholarship scheme available for diploma and graduate courses to the courses related to AME, cabin crew and other civil aviation professionals; (b) a special cell to be made at directorate level to engage with airlines to support placement services to graduating and aspiring civil aviation professionals of Uttar Pradesh.

c. Ecosystem support –

• In order to boost passenger traffic, under the Civil Aviation Policy 2017, the government has proposed to expand the air travel through LTC to certain categories of officers and employees on RCS flights for all official purposes.

• Publicity support for RCS routes will be provided by state government through information and tourism department

• Dedicatedto and fro bus service from airport will be provided by U.P. State Transport Corporation.

• Road connectivity of all RCS airports will be ensured and maintained by state Public Works Department on priority.

• To promote medical tourism in U.P. the Department of Tourism and Department of Medical Health of state government will facilitate airlines to collaborate with reputed medical institutions and hospitals.

d. Fiscal Incentives -

Summary of Incentives and Concessions for RCS Airports/Routes under Civil Aviation Policy 2017

S.No. Description of Incentive/ Concession Incentives/Concessions for RCS Routes/ Airports
Mandatory Support by State Government under RCS and MoU
1 VAT on ATF Zero for 10years
2 Viability Gap Funding (for 50% of total seats) 20% state share as per RCS
3 Security arrangements at RCS Airports [Mandatory support by State Government under RCS] Will be provided by theState Government
4 Fire Services Will be made available by the State Government free of cost
5 Electricity Will be made available by the State Government at concessional rate (Rate of subsidy will be Rs 4/ unit up to 30000 units per month)
6 Water Will be made available by the State Government free of cost
7 Provision of ATF fueling facilities at RCS airports TheState Government will facilitate and provide necessary land at zero rental to Oil Marketing Companies to develop ATF fueling facilities at RCS Airports owned by the State Government
8 Road Connectivity Road Connectivity for allRCS airports will be ensured and maintained by the PWD Department of GoUP from its own resources.
9 Bus service to the nearby maincity Bus Service to all RCS airports will be ensured and maintained by UPSRTC.
10 Ambulance and Medical facilities Will bemade available by the Medical & Health Department of the State Government
Additional support by state government
11 Underwriting of Non VGFSeats (from remaining 50% ofTotal seats) @Rs 2500/ underwrittenseat 100%- For category-1 Aircraftconnecting Lucknow with Divisional Headquarters (initially for 3 years) 30% - for other categories of Aircraftor on other routes (initially for 3 years)
12 Reimbursement of S-GST on sale of air tickets on RCS flights as applicable 100% reimbursement initially for 3 years
13 AirportParking/NightHaltsatRCS Airports Zero Charges (initially for 3 years) at Airports/ Airstrips owned by the State Government
14 SpaceatNo-FrillsAirportsforoffice of airlinesupto100sqmandaircraft maintenance engagedin RCS inUP Zero Rental (initially for 3 years) at Airports/ Airstrips owned by the State Government
15 Route Navigation and Facilitation Charges (RNFC) 50% of RNFC (upto Rs 2000 ) will be reimbursed on RCS Airports or flightsconnecting Divisional Headquarters (initially for 3 years)

a. Jewar Airport –

One of the most ambitous greenfield international airport of India is being planned to be set up at Jewar at Gautam Budh Nagar district of Uttar Pradesh. Some of the salient features of the upcoming airport are as follows -

  • i. Second Airport in National Capital Region – Planned to be world class international airport.
  • ii. The site clearance (around 3000 hectare) has already been provided by the Government of India to develop the airport.
  • iii. Theairport capacity is expected to be 30-50 million passengers annually – the first phase to handle 20-25 million passengers with one terminal and one runway in 1000 hectare.
  • iv. The total expected outlay for the project is INR 15000 to INR 20000 crores.
  • v. Metro connectivity from Greater Noida Metro station to Jewar Airport has been assured by Government of Uttar Pradesh
  • vi. Yamuna Expressway Industrial Development Authority (YEIDA) will be the nodal agency for the project.
  • vii. The airport area is planned to be developed as an Aerotropoliswith industrial clusters and education centres around it.

b. Kushinagar Airport –

Also known as Kasia Airport, the Kushinagar airport is one of the proposed international airports in Uttar Pradesh intended to cater to the needs of the international tourist traffic in the district which is a prominent Buddhist pilgrimage site.

  • i. The expected project cost is INR 354 crore to be developed underunder PPP model.
  • ii. It will be pursued on Design-Build-Finance-Operate-Transfer (DBFOT) basis.
  • iii. Airport will have a runway of 3,200 meters and estimated to serve 250,000 tourists annually.
  • iv. The state has already acquired land of 550 acres for the project.
Key investible Projects
MRO Facility near Jewar Airport
1. Area of the Project -
2. Approx. Project Cost -
3. Present status -
4. Incentives -
5. Nodal Agency -
6. Name of Contact Person -
7. Contact No –
8. Email Id –
1000 Hectares
INR 3000 crores
Incentives under Civil Aviation Policy 2017
Dr Arun Vir Singh, CEO YEIDA
Cargo Hub near Jewar Airport
1. Area of the Project -
2. Approx. Project Cost -
3. Present status -
4. Incentives -
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500 Hectares
INR 2000 crores
Incentives under Civil Aviation Policy 2017 and IIEPP 2017.
Dr Arun Vir Singh, CEO YEIDA

Capitalising on the several demand factors for the sector in the state, investment opportunities lies across the value chain. Towards this, the state seeks investment from all

  • • General Aviation Companies
  • • Air Cargo & Logistic service
  • • Fixed Based Operator companies
  • • Airport Management Companies
  • • Freight Forwarders
  • • Aircraft service providers
  • • Air Traffic management service
  • • Charter Airlines and Low Cost Carriers
  • • Ground Handler Companies
  • • Aviation Insurance
  • • Airport infrastructuredevelopers
  • • Maintenance, Repair & Overhaul (MRO Companies)
  • • Aircraft Manufacturers
  • • Investment Banks & Financial Institutes
  • • Aviation Oil companies
  • • Aviation training providers/ institutions
  • • Training and SimulationProviders
  • • Aviation consulting companies
  • • Terminal interiors & lighting companies
  • • Security equipmentcompanies

the below stakeholders but not limited to –

Following are the key investment opportunities offered by the state in the Aviation sector -

a. New Airports/ airstrips and upgradation –

  • o Scope for development of Greenfield/ Brownfield airports
  • o Amended AAI Act allows Public-Private Partnership (PPP) model for development of Greenfield airports through 100% FDI automatic route.
  • o Airport Authority of India to develop the airstrips into no-frills airports

b. Cargo hubs and MRO facilities–

  • o State Government aims at facilitating setting up MRO facilities at existing airports or at new locations such as near the proposed Jewar Airport at Gautam Buddha Nagar District.
  • o With upcoming inland waterways on Ganges between Allahabad and Haldia (Kolkata), airports at Allahabad & Varanasi will have potential forair cargo boom.

c. Aircraft Manufacturing/ Assembling

  • o Given the huge demand factors, local ecosystem and favourable policy support,aircraft/helicopters manufacturing or assembling has immense potential in the state.
  • o The State Government aims to incentivise aircraft manufacturing/ assembling by reimbursing the corresponding S-GST (State GST) receivable to Govt. of U.P. for 10 years up-to a maximum of 10 units such assembly units.
  • o In case airlines purchase aircraft/helicopter, which is manufactured or assembledin U.P. and deployed primarily at routes in U.P ( where at least 50% of takeoffsare from airports in U.P.), for at least five years, will be eligible for Concessions and incentives as per Industrial Investment & Employment Promotion Policy of UP 2017 (IIEPP 2017) on plant andmachinery for acquisition cost of aircraft, as per eligibility.

d. Connectivity to Non-RCS airports

Attractive incentives under Civil Aviation Policy 2017 and strong demand factors makes interconnectivity of the 3 non-RCS aiports in UP - Lucknow, Gorakhpur and Varanasi airports an attractive investment option.

e. Heliports and Helipads

  • o The State already has 68 helipads which is the 4thhighest number in India.
  • o With helicopter service becoming an attractive mode of transit in tourism, particularly religious tourism in the state which attracts high passenger traffic, investments in heliports and helipads in the state is an attractive investment option.
  • o The state seeks investments to connect all tourist destinations with helicopter service including Lucknow, Ayodhaya, Varanasi, Prayad, Naimisharanya, Chitrakoot, Kushinagar, Mathura and Vrindavan.
  • o As a potential logisticand business support infrastructure,heliport & helipadsin key industrial hubs such as Mathura, Meerut, Agra etc.offers immense potential. It can also have a possible spillover effect of decongesting the nearby airports.

f. Business Aviation

The state is one of the leading business destinations and the second largest economy of India. It hosts the highest number of MSMEs in the country and is home to several leading industrialists & businessmen. With an increased economic & business activity across the state, business aviation has immense growth potential in Uttar Pardesh.

g. Aerotropolis

There is an immense potential for developing township, aviation-linked & other business hubs, logistic hubs & aerospace parksaround key airports in Uttar Pradesh complementing the vision of Smart cities in the state. The proposed greenfield Jewar International Airport can be one such destination with large land bank and industrial agglomeration around the region and Chola in Bulandshahr.

h. Training & Education (Vocational & Education)

In order to support growing needs across the aviation value chain and generate local pool of talent that captive clients such as airlines/ airports and other aviation companies can tap into, there is a strong need for developing academic and vocational training facilities in UP. There is opportunity for investors in aviation training and education in areas like pilots, crew, technicians, mechanics, general management and other skills required to support the aviation industry. There is also a need for dedicated flight training centres.

i. Other allied opportunities: FBOs& Aviation Insurance

With prominence, growth and development of airports across the state, opportunities in Fixed base Operations like ground-handling, passenger services, hospitality, maintenance support, lease and purchase of aircraft and helicopters and spare parts for various fixed-wingbusiness jets and helicopters are also expected to spike. The rapid growth of the sector has also increased demand for aviation insurance.

Key Stakeholders -