Jewar airport project takes off after key pact inked
Delhi’s second airport project, set to come up on its outskirts in Jewar, took off on Wednesday after a concession agreement for starting work was signed between the
Uttar Pradesh government and Zurich
Airport International
AG.
The pandemic had delayed signing of the agreement as Zurich
Airport officials were unable to travel.
The first phase is expected to be completed by 2024 and will cater to 12 million passengers, said Daniel
Bircher, chief executive officer of Zurich
Airport International
Asia. It currently holds
100 per cent stake in the Noida airport project. It outbid the Delhi International Airport
(DIAL), Adani Enterprises, and Anchorage Infrastructure Investments Holdings last year to win the 40-year concession for the Noida airport.
Zurich Airport offered a revenue share of ~400.97 per passenger. GMR, which had the right of first refusal (ROFR), offered ~351 per passenger. It would have had the chance to match the highest bid only if its offer was within 10 per cent of Zurich’s.
Despite the deep impact of the coronavirus pandemic on the aviation sector, Bircher said the project deadline will be met.
Infrastructure projects in India are seldom completed on time with issues like land acquisition, availability of finance affecting them. The second international airport in Mumbai was slated to open in 2019, but has been delayed with the current deadline being 2021.
While the first phase will have one runway and cater to 12 million passengers, by the fourth phase Zurich plans to have two runways and cater to 70 million passengers. The total investment in the first phase of the project will be ~4,666 crore.
Arun Veer Singh, CEO of Yamuna Expressway Development Authority (YEIDA), said 5,000 hectare is available for the project and this can be increased based on necessity.
PWC, which was tasked with conducting a techno feasibility study of the airport, has suggested that the airport can sustain five runways. “PWC gave a presentation on techno-economic feasibility report on Friday, informing us that three more runways are feasible on the 5,000 hectare notified for the airport at Jewar, bringing total runway capacity to five,” Singh said.
However, Bircher said planning for the next phase will begin only when the airport attains 80 per cent of projected passenger growth.
While it has been named the Noida International Airport and is situated 70 kms from Delhi, the project has been pitched as Delhi’s second airport and will compete against Gmr-owned Indira Gandhi International Airport. Christoph Schnellman, CEO of the Noida airport, said that while the airport expects some spillover traffic from Delhi, the primary aim will be to target the catchment area of Noida, Greater Noida and Western UP.