Synopsis: AAI’s Rs. 17,000-crore airspace modernization by 2029 will upgrade ATC towers, navigation systems, and training facilities, benefiting defence-aerospace and infra companies like Data Patterns, BEL, EIL, Astra Microwave, and CEMINDIA through increased tech and civil-infra demand.
The Airports Authority of India (AAI) is undertaking its largest modernization drive with a planned investment of Rs. 15,000–17,000 crore by 2029 aimed at expanding and modernizing India’s airspace capacity.
This comprehensive initiative will cover upgrades or construction of 65 air traffic control (ATC) towers across the country, equipped with automation, advanced equipment, and modern navigation systems to improve operational efficiency and reduce aircraft congestion.
Approximately 60% of the investment capital will be allocated to civil infrastructure works, includingthe construction and revamping of ATC towers, while the remaining 40% targets technology upgrades, such as the installation of new Air Navigation Services (ANS) systems and automation tools.
The plan prioritizes major greenfield projects in airports with high expected traffic growth such as Bhogapuram, Navi Mumbai, Dholera, and Jewar, reflecting India’s rapid aviation sector growth and the need to align air traffic management standards with global hubs.
Besides improving airspace capacity and reducing peak congestion, this program also includes workforce enhancement through upgrades of training facilities like the Prayagraj training center, adding simulators and radar facilities to speed up controller training.
This initiative aims to tackle bottlenecks restricting aviation expansion in India by enhancing airport infrastructure, navigation capabilities, and air traffic services comprehensively, thereby supporting the country’s passenger and cargo traffic demand.
Stocks to benefit
Data Patterns (India) Ltd
Data Patterns is a high-tech defence and aerospace electronics company that designs and manufactures avionics, radars, electronic warfare systems, and communication equipment. Its products are used in aircraft, UAVs, and air-defence networks, making it a direct beneficiary of India’s airspace modernization and ATC technology upgrades.
With market capitalization of Rs. 16,467 cr, the shares of Data Patterns (India) Ltd are closed at Rs. 2,941.40 per share, from its previous close of Rs. 3,031.80 per share.
Bharat Electronics Ltd (BEL)
BEL is a leading defence PSU with a strong presence in aerospace electronics, supplying ATC radars, surveillance systems, avionics, and secure communication systems used in airports and air-defence networks. With AAI upgrading national airspace systems, BEL stands out as one of the key companies poised to gain.
With market capitalization of Rs. 2,95,168 cr, the shares of Bharat Electronics Ltd are closed at Rs. 403.80 per share, from its previous close of Rs. 416.20 per share.
Engineers India Ltd (EIL)
Engineers India Ltd plays an indirect but important role in aviation and aerospace infrastructure by providing engineering consultancy, EPC services, and project management for airport projects, including fuel farms, MRO facilities, and support buildings. While not an aerospace manufacturer, it supports major airport and airspace development projects.
With market capitalization of Rs. 11,162 cr, the shares of Engineers India Ltd are closed at Rs. 198.60 per share, from its previous close of Rs. 195.65 per share.
Astra Microwave Products Ltd
Astra Microwave is a specialist in RF and microwave technologies used in radars, satellite communication, missiles, and aerospace systems. The company works closely with DRDO, BEL, and ISRO, contributing to radar and communication systems essential for airspace surveillance and defence aviation infrastructure.
With market capitalization of Rs. 8,914 cr, the shares of Astra Microwave Products Ltd are closed at Rs. 938.95 per share, from its previous close of Rs. 976.15 per share.
CEMINDIA Projects Ltd
CEMINDIA Projects Ltd is involved in EPC and construction activities and plays a supporting role in aviation infrastructure by executing airport-related civil works such as runways, taxiways, airport buildings, and allied facilities. Its exposure to aerospace infra comes from its participation in building and upgrading airport infrastructure.
With market capitalization of Rs. 13,226 cr, the shares of CEMINDIA Projects Ltd are closed at Rs.769.95 per share, from its previous close of Rs. 778.85 per share.
Written by Manideep Appana
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