UP extends deadline for deal with Swiss Co to develop Noida Int'l airport

The decision was taken due to lockdown-induced suspension of international flights

The Uttar Pradesh cabinet has extended the deadline for signing the concession agreement with Swiss company Zurich Airport International (ZAI) to develop the proposed greenfield Jewar airport project in Greater Noida owing to lockdown-induced suspension of transnational flights.

The state has taken into account the likely resumption of international flights between India and Malaysia and India and Switzerland in the coming months, apart from the mandatory quarantine period for international travellers entering the country.

According to the cabinet decision, the deadline for signing the agreement with the Swiss major has been extended till 45 days from the resumption of India-Malaysia and India-Switzerland flights (whichever is later) or August 17, 2020, whichever is earlier.

Besides, the cabinet meeting yesterday also authorised chief minister Yogi Adityanath to take the call on various issues related to the project from time to time.

The project will be developed under the aegis of the Noida International Airport Limited (NIAL). The airport is touted to generate revenues of nearly Rs one trillion for UP in 30 years after it becomes operational in 2023. As per the techno-economic feasibility report, the airport would handle 70 million passengers and 3 million tonnes cargo annually when fully developed in different phases.

On December 9, 2019, the Adityanath cabinet had approved the proposal to award the flagship project to ZAI, which had emerged as the highest bidder offering per passenger fee of nearly Rs 401, thus beating three other competitors, including GMR Group-led Delhi International Airport Limited (DIAL), Adani Enterprises and Anchorage Infrastructure Investments Holdings.

Earlier, the state project monitoring and implementation committee had recommended ZAI be awarded the contract for the airport.

The new airport will be designed, developed and operated under a 40 year concession period and ZAI will invest more than Rs 4,500 crore in the first phase of the project, which will also decongest the New Delhi’s Indira Gandhi International Airport (IGIA).

The airport will require 1,450 hectares of land for the first phase civil works spanning six villages in Greater Noida.

In May 2019, the state cabinet had approved the proposal to float global tender for the project apart from disbursal of Rs 895 crore towards rehabilitation and resettlement of affected private land owners.

On July 6, 2017, the Centre had given site clearance for the airport and on October 5, 2017, the union home ministry accorded a no objection certificate (NoC).

In December 2017, Rs 1,800 crore was allocated by UP for land acquisition, while on May 9, 2018, the Airports Authority of India (AAI) gave in principle approval to the mega project.

Conceived in 2000, the project had been hanging fire for the last two decades owing to regulatory and clearances hurdles during the previous Mulayam  Singh Yadav, Mayawati and Akhilesh regimes in UP.