Kerala Budget Allocates Rs 200 Crore for Aviation Sector Development
Kerala Budget Rs 200 Crore for Aviation Development

Kochi: Chief Minister V D Satheesan has unveiled a series of initiatives designed to bolster the state's general aviation ecosystem, opening up fresh avenues for investment, job creation, and infrastructure growth. The state budget has set aside an allocation of Rs 200 crore for the advancement of the aviation sector across Kerala's four international airports.

The proposals include the establishment of pilot training and flight simulation centers, expansion of maintenance, repair, and overhaul (MRO) infrastructure, development of a global convention center, a green hydrogen hub, and battery energy storage systems (BESS). The planned expansion of MRO infrastructure is expected to enhance the state's capabilities in aircraft maintenance services and support the growth of aviation-related industries.

Cochin International Airport Ltd (CIAL) currently operates two narrow-body MRO hangars and has provisions for adding two more narrow-body hangars to meet future demands, as mentioned in the budget. The proposal for a green hydrogen hub is particularly significant in the context of sustainable aviation and clean energy development. The budget has also identified BESS as a key area for future development, which will reduce dependence on conventional grid power and further strengthen renewable energy initiatives.

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CIAL, in technical collaboration with BPCL, is already progressing with a 4MW green hydrogen project, the first such initiative within an airport ecosystem in the country. “The aviation-focused initiatives announced in the budget have the potential to create a strong multiplier effect across the state’s economy. Considering the strong multiplier effect associated with the sector, the proposed investment of Rs 200 crore in aviation development has the potential to support the creation of around 5,000 direct and indirect employment opportunities,” said S Suhas, Managing Director of CIAL.

“The proposed investments in aviation infrastructure and related sectors are expected to create substantial opportunities for skilled youth, attract new investments, and stimulate economic activity. We are encouraged by the emphasis placed on the sector and are hopeful that these initiatives will further strengthen Kerala’s position as an emerging aviation and aerospace destination,” he added.

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