Madhya Pradesh Finalises New Aviation Policy-2027 to Draw Investment and Expand Air Network
Why It MattersState aviation policies increasingly compete on industrial incentives and training capacity as well as airport counts, positioning regional governments as bidders for aerospace manufacturing, pilot-training and rotary-wing support investment.
What happened
Madhya Pradesh is finalising a new aviation policy aimed at attracting investment, strengthening air connectivity and expanding tourism and emergency services. The draft was discussed at a meeting of the Senior Secretaries Committee at Vallabh Bhawan, chaired by Chief Secretary Ashok Barnwal, with senior officials from the Aviation, Urban Development and Housing, Finance and other departments attending.
The draft proposes an investment-friendly framework, including incentives for companies setting up units in the state to manufacture aircraft and helicopter equipment and components. Officials said the proposals include support on land, power and water. It also proposes encouragement for pilot training schools and training centres, along with measures to strengthen the air network and aviation infrastructure.
The policy builds on the Civil Aviation Policy-2025, under which the state has set a target of an airport every 150 km, an airstrip every 75 km and a helipad every 45 km. Madhya Pradesh currently has eight operational airports, more than 20 airstrips and around 220 helipads, with airports at Ujjain and Shivpuri under development.
The meeting also reviewed the state government's VIP fleet. The government's new Bombardier Challenger 3500 jet arrived in Bhopal on October 19 and is awaiting DGCA flying clearance, expected by late November or the first week of December. The new Airbus ACH160 helicopter is now expected by December, having earlier been reported for November delivery. It will arrive in dismantled form, with parts shipped to Mumbai port and assembled in Noida, then flown to Bhopal after flight tests and clearances.
Industry impact & what to watch
The draft shows a state moving beyond infrastructure targets toward industrial policy. Offering land, power and water to component manufacturers is how regional governments typically compete for aerospace supply-chain units, and pairing that with support for pilot training schools addresses the demand side for crews and technicians in the same document.
The infrastructure targets matter for operators of smaller aircraft and helicopters. A density goal of a helipad every 45 km and an airstrip every 75 km, set against around 220 helipads and more than 20 airstrips today, points to rotary-wing and light-aircraft activity as the segment the state expects to grow, particularly for tourism and emergency services.
The nearest dated markers are on the state's own fleet: DGCA flying clearance for the Challenger 3500, expected by late November or the first week of December, and the ACH160 helicopter now expected by December after assembly in Noida and flight tests. The final policy text, once issued, will show which incentives are actually attached to the proposals officials described.
