Aviation stocks gain as Centre expects 15 new terminal buildings costing Rs15,000cr in next 5 years

The aviation minister said that the value of steel used in the construction of Airport Terminal Buildings in the past 3 years is Rs570cr.

Aug 19, 2020 02:08 IST India Infoline News Service

Aviation stocks like Interglobe Aviation (Indigo) and SpiceJet witnessed upside on Wednesday after the Civil Aviation Minister, Hardeep Singh Puri announced that in the next five years 15 new Airport Terminal buildings are planned at a cost of Rs15,000cr.

At around 2.13 PM, Indigo was trading at Rs1220.50 per piece up 2%. While SpiceJet was performing at Rs50.80 per piece higher by 0.79% on Sensex.

The minister in a webinar on Atmanirbhar Bharat: Fostering Steel Usage in Housing & Construction and Aviation Sector, said on Tuesday, the value of steel used in the construction of Airport Terminal Buildings in the past 3-years is Rs570cr.

He said, "Steel is being used extensively in Airport Terminal buildings for the roof structure and as support to glass façade." Adding he stated that with a steel roof structure, large column-free spaces can be created to give unobstructed view and appearance.

Thereby, Puri says that the value of steel expected to be used for the construction of Airport Terminal Buildings in the next 5-years amounting approximately to Rs1,905cr. He also said that in the next five years 15 new Terminal buildings are planned at a cost of Rs15,000cr requiring a large quantity of steel and added that on an average 12-15% of cost component is steelwork for Airports.

Puri believes that the steel ministry’s vision of 300MT of capacity by 2030 would be strongly supplemented by the demand generated by urban infrastructure development over the next decade.

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