Kashmir Ahead

Cabinet clears ₹1,667 crore integrated terminal at Srinagar airport

Srinagar, February 26,2026-: In a landmark infrastructure decision, the Union Cabinet has approved the construction of a ₹1,667 crore New Integrated Terminal Building (NITB) at Srinagar International Airport, significantly enhancing the aviation capacity of Jammu and Kashmir and strengthening the region’s economic growth prospects.

The expansion is being seen not merely as a construction upgrade but as a long-term economic enabler that will accelerate tourism, generate employment, and boost investor confidence in the Union Territory.

Major Capacity Upgrade

The new terminal will dramatically increase the airport’s handling capacity:

  • Peak Hour Passenger (PHP) capacity: From 950 to 2,900
  • Annual passenger handling capacity: Up to 10 million passengers
  • Multi-level parking facility: To ease congestion and streamline traffic flow

The expansion aims to accommodate rising passenger traffic and improve overall operational efficiency, ensuring smoother connectivity for the Kashmir Valley.

Strengthening Connectivity as a Growth Engine

Connectivity remains a critical driver of development in Jammu & Kashmir, given its unique geography. With enhanced airport capacity, the region is expected to witness improved flight frequency, better route access, and reduced operational bottlenecks.

Improved air infrastructure directly contributes to faster mobility for tourists, students, patients, professionals, and business travelers, making the Valley more accessible and economically integrated with the rest of the country.

Tourism Set for Structural Growth

The airport expansion is expected to give a sustained push to Kashmir tourism, enabling the region to host more visitors consistently throughout the year rather than only during peak seasons.

Steady tourist inflow is likely to generate stable demand across sectors including:

  • Hotels and homestays
  • Transport services and taxis
  • Restaurants and cafés
  • Local handicrafts and artisan markets
  • Adventure tourism operators

Officials believe this will transform tourism from seasonal spikes into a stable economic pillar for Jammu & Kashmir.

Employment and Economic Multiplier Effect

While airport projects create direct jobs in construction, aviation operations, and maintenance, their broader impact extends across hospitality, logistics, retail, and supply chains.

Experts note that infrastructure upgrades of this scale have a multiplier effect, supporting thousands of indirect livelihoods beyond the airport premises and strengthening the local economy.

Enabling Investment and Business Expansion

Improved aviation infrastructure enhances ease of doing business by facilitating corporate travel, conferences, events, and faster executive mobility. A modernized Srinagar Airport is expected to make the region more attractive for investors and enterprises looking to expand into Jammu & Kashmir.

A Signal of Long-Term Planning

The approval of the New Integrated Terminal reflects a forward-looking development strategy focused on capacity building and sustained economic growth. With the capability to handle 10 million passengers annually, the project signals confidence in the Valley’s rising demand and expanding opportunities.

Conclusion

The ₹1,667 crore expansion of Srinagar Airport marks a significant milestone in Jammu & Kashmir’s infrastructure journey. By strengthening connectivity, stabilizing tourism growth, creating jobs, and encouraging investment, the project positions the Union Territory for accelerated economic transformation in the coming years.

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