Letter From ChairmanFrom the Chairman’s Desk
Dear Shareholders,
When we review DAFFPL’s financial performance in fiscal year 2023, we can see, our total revenue collection has reached Rs. 106.00 Crores, and profit stood at Rs. 23.09 Crores against a loss of Rs. 5.33 Crores during FY 2021-22. The civil aviation industry in India has emerged as one of the fastest growing industries in the country during the last three years. Domestic traffic contributes around 69% of the total airline traffic in South Asia.
The Indian aviation industry has recovered fully from the COVID-19 pandemic shock as indicated by the domestic air traffic movement averaging 5,422.000 unit from June 2021 to June 2023. India has become the third largest domestic aviation market in the world and is expected to overtake UK to become the third largest air passenger market by 2024.India is expected to overtake China and the United States as the world’s third-largest air passenger market by 2030, according to the International Air Transport Association (IATA). Further, the rising demand in the sector has pushed up the number of airplanes operating in the sector. The number of airplanes is expected to reach 1,100
planes by 2027 from the current 650.
Freight traffic at airports in India has the potential to reach 17 MT by FY40. In FY22, the number of aircraft movements stood at 17.57 Lacs which has reached beyond 20.29 Lacs in FY23. To cater to the rising air traffic, the Government of India has been working towards increasing the number of airports. India has envisaged increasing the number of operational airports to 220 by 2025.
According to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflow in India’s air transport sector (including air freight) reached US$ 3.61 billion between April 2000-September 2022. The government has allowed 100% FDI under the automatic route in scheduled air transport service, regional air transport service, and domestic scheduled passenger airlines. However, FDI over 49% would require government approval. AAI and other Airport Developers have targeted a capital outlay of approximately Rs. 98,000 crores in the airport sector in the next five years.
Further, the number of PPP (Public Private Partnership) airports is likely to increase to 24 by 2024. The Government of India has undertaken numbers of major initiatives, to name a few:
In the Union Budget 2023-24:
o Rs. 3,224.67 crores (US$ 440.36 million) has been allocated to the Ministry of Civil Aviation.
o Government to revive 50 aircraft landing sites comprising airports, heliports, water aerodromes and advanced landing grounds to improve regional air connectivity.
o In the budget 2022-23, the RCS (Regional Connectivity Scheme) UDAN scheme which aims to stimulate regional air connectivity has been allocated Rs. 601 crores (US$ 77.52 million).
o For better execution of the PM-Gati Shakti vision, Mr. Jyotiraditya M. Scindia, Minister of Civil Aviation asks for synergy between the Central and State Governments to build 16 new airports in Madhya Pradesh, Chhattisgarh, Uttar Pradesh, Rajasthan, and Maharashtra.
NABH (NextGen Airports for Bharat) – Nirman is a government initiative to expand airport capacity more than five times to handle billions of trips a year, in the next 10-15 years.
AAI Startup Policy: Delivering a framework & mechanism for the interaction of AAI with internal and external stakeholders that catalyze innovation at airports and leveraging technology for addressing challenges and enhancing the delivery of services to passengers.
Under four rounds of bidding of RCS-UDAN, as of November 2022, 459 routes have commenced, operationalizing 70 airports including 2 water aerodromes & 9 heliports.
Union Minister for Civil Aviation Mr. Jyotiraditya Scindia launches Digi Yatra for three airports in the country. Another four airports are in the pipelines.
Civil enclave to be built in Jammu at a cost of Rs. 861 crores.
In October 2022, Prime Minister Mr. Narendra Modi laid the foundation stone of the C-295 Aircraft Manufacturing Facility in Vadodara, Gujarat.
The government has been instrumental in developing policies to give a boost to the aviation sector. For this, UDAN-RCS scheme has been launched by the government which aims to increase air connectivity by providing affordable, economically viable and profitable travel on regional routes.
Your company continued to play a vital role in ensuring uninterrupted supply of Aviation Turbine Fuel
at the Indira Gandhi International Airport, New Delhi with the support of the parent Maharatna
Companies, Indian Oil Corporation Limited and Bharat Petroleum Corporation Limited, along with
other oil marketing companies, as well.
With a goal to meet the highest environmental, safety and operational standards, your Company has
continued its ambitious infrastructure modernization project along with laying of state-of-the-art Aviation
Fuel Hydrant System (AFHS) for Terminal – 1 of IGI Airport at New Delhi. The AFHS at Terminal 1 shall
be operational shortly in FY 24.
On the philanthropic initiative under the Companies Act, 2013, Company has spent an amount of Rs.
81.20 Lacs in FY 2022-23 on following CSR projects aligned with the Company’s CSR policy which are
being applauded by stakeholders and society at large.
A. Project Utthan is now the primary CSR project of the Company with a focus on empowering
the unemployed youths and women to make them self-dependent and equipped with
employment and livelihood skills. Company has established DAFFPL Learning & Skill
Development Centres around IGI Airport including Shahabad Mohammad Pur, Raj Nagar,
Mahipalpur, Palam Village, Najafgarh and Samalka etc. The centres impart practical knowledge
on various employable skills like Basic Computer Course, Tailoring, Beauty Parlor and Art &
Craft. DAFFPL has collaborated with implementing agencies who have expertise in respective
fields e.g.
(i) Basic Computer course and Tailoring in collaboration with GMR Varalakshmi
Foundation
(ii) Office automation course in collaboration with NIIT Foundation and
(iii) Beautician, dress designing, art & craft and basic computer course for women in
collaboration with Human Care International.
B. Project Shiksha, yet another important project in collaboration with Room to Read India has
supported the Literacy Programme by setting up 3 (three) libraries in the SDMC government
primary schools in Delhi. The goal of the project is to promote the habit of reading by creating
a child-friendly literacy environment in the Government Primary Schools and building the
professional capacities of teachers and principals.
C. The Company, in collaboration with Human Care International undertook Project Divyang
with a view to provide meals to differently abled/needy people every month.
D. Project e-Vidyarjan in collaboration with NIIT Foundation, aims to establish IT lab and Digital
Empowerment Programme in Govt. run public schools in and around airport.
E. DAFFPL has initiated Project Tree Plantation in Miyawaki method for ensuring environment
sustainability and ecological balance with the support of Green Yatra, a pioneer in this field.
Forests created under Miyawaki method grow faster and denser, more biodiversity, better
Carbon-dioxide absorption, better noise and dust reduction, as compared to a monoculture
plantation.
Our Hon’ble Prime Minister of India, in his recent ‘Mann Ki Baat’ event has praised
Miyawaki Urban Dense Forestation by referring to the Miyawaki forests in Lucknow, Mumbai,
Gujrat and Kerala and also enthused public to explore the method in order to create a green
and pollution free urban India.
DAFFPL is starting to move to a position of strength after overcoming many challenging years. The
upcoming year and beyond are crucial, as it capitalizes on the efforts made during this period to achieve
a performance that makes us proud. We are firmly committed to build one of the best ATF supply
systems in the world.
We look forward to receiving enhanced level of support from our stakeholders as we invest in growth
and sustainability.
On behalf of the Board of Directors and Management of DAFFPL, I convey sincere thanks to you for
your continued trust, confidence and support.
Let’s fly high together!
Very Sincerly,
P.S. Nair
Chairman