New Delhi: Federal Express Corporation (FedEx) plans to invest USD 150 million (around Rs 1,430 crore) to develop an air cargo hub spread across 2,30,000 square feet at the Delhi airport.
The groundbreaking ceremony for the facility was held in the national capital on Tuesday in the presence of Civil Aviation Minister K Rammohan Naidu, who said India should be the backbone for air cargo movements.
Follow The PSUWatch Channel on WhatsApp
The integrated air cargo hub will be set up at GMR Cargo City at the Indira Gandhi International Airport (IGIA) and will help strengthen the connectivity across North and East India, linking businesses with global markets, FedEx said in a release.
FedEx said the hub, once operational, is designed to increase processing capacity from 600 to 5,000 packages per hour, and can be scaled up further.
"The proposed facility represents a long-term investment of approximately USD 150 million by FedEx," the release said.
At the current exchange rate, USD 150 million is worth over Rs 1,400 crore.
The facility is expected to be completed in 12 to 18 months.
FedEx Middle East, Indian Subcontinent and Africa (MEISA) President Kami Viswanathan said India is a critical market in its global network and that the air cargo hub in the national capital will enable the company to serve the north and east markets in India.
"It will consolidate our gateway and pickup and delivery operations in one location. And with the automation that we will bring in to the hub, including automated sortation and high-speed X-ray screening equipment and so on, it will increase speed and efficiency and throughput," she told PTI in an interview.
FedEx is a leading express transportation company and uses a global air and ground network for shipments.
The construction works for the GMR Cargo City, which is to be developed in phases, are expected to start shortly.
"Phase 1 will comprise approximately 1 million square feet of development across nearly 30 acres. The detailed design for Phase 1 has been finalised by leading consultants, enabling works have commenced, and construction is expected to begin shortly," the release said.
To boost the country's air cargo segment, Naidu said the ministry is looking at having air freight stations policy whereby efficiency can be improved by enabling end-to-end cargo processing at off-airport facilities.
"We can decongest our cargo terminals and use that area for further aviation development at the airport," he said and cited the example of Schiphol airport in Amsterdam.
The government is making efforts to further strengthen air cargo transhipment in the country and has done away with re-screening of air cargo at transit airports.
Follow Energy Watch on LinkedIN
"I commit myself to engaging more and more with the industry... (and) come up with better policies," he said.
While noting that air cargo is much more than aviation and it is an economic multiplier, Civil Aviation Secretary Samir Kumar Sinha said the government's focus is increasingly on reducing the time and friction involved in moving air cargo.
The government will continue to work with airports, airlines, logistics companies and global partners to remove all kinds of bottlenecks and create an ecosystem where speed, scale and efficiency reinforce each other, Sinha said.
India handled 3.96 million metric tonnes of air cargo in 2025-26, more than 6.5 percent higher than the previous year.
"We believe that by 2030 our ambition would be to reach 10 million metric tonnes of annual (air) cargo throughput," Sinha said.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)