India approves New Delhi airport PPP

India approves New Delhi airport PPP

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The Government of India has granted in-principle approval for a US$3 billion airport PPP south of New Delhi in view of the rapidly growing flying requirements of the National Capital Region (NCR).

The Minister for Civil Aviation Shri P. Ashok Gajapathi Raju said that the air traffic in the NCR region is growing very fast. From the current level of 62 million passengers per annum (MPPA), it is expected to reach up to 91 MPPA by 2020 and 109 MPPA by 2024, which would be the saturation point for the Indira Gandhi International (IGI) Airport in Delhi. So Delhi will require a second airport in the next 7-10 years.

The minister said that the Government of Uttar Pradesh (UP) had submitted a proposal for construction of a new Greenfield International Airport at Jewar in Greater Noida, and the Ministry of Civil Aviation has accorded in principle approval for the project based on the recommendations of the Steering Committee on Greenfield Airports, headed by the Secretary (CA). 

The Noida International Airport will be located 72Kms from IGI Airport and 65 Kms from Hindon Air Force station Ghaziabad. Yamuna Expressway Industrial Development Authority (YEIDA) is the implementing authority of the project. An area of 3000 hectares has been notified for the airport which will be developed in phases. An area of 1000 hectares will be developed in the first phase at an estimated cost of INR100 billion (US$1.5 billion). There will be one runway in the first phase. Three more runways will be developed in subsequent phases. The total cost of development of all phases is expected to be around INR150 - 200 billion (US$2.3 - 3 billion). The airport is expected to cater to 30-50 MPPA over the next 10 to 15 years. Government of UP along with YEIDA will bear the cost of land procurement.

The airport is expected to be operational within the next 4-5 years. 

The project will be implemented in the PPP mode for which concessionaire is to be identified based on open market competitive bidding process. 

Metro connectivity was being extended to Jewar, and so the airport would have multi modal connectivity by road and rail. UP Government and YEIDA are preparing the Techno-Economic Feasibility Report for the project. 

The airport is not only important for the NCR region but also for Western Uttar Pradesh. Cities in this part of Uttar Pradesh have a lot of potential in terms of air traffic and the Noida airport will help in providing seamless domestic and international connectivity to the region. The project will give a big boost to economic development in the region. Greater Noida and Western Uttar Pradesh have many industries that will benefit from this improved connectivity. It will also encourage more industrialization, thus pushing economic growth. 

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