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Zurich Airport International to build Delhi’s second Airport

Zurich International AG won the bid to build the Indian capital’s 2nd Airport in Jewar-Gautambudhnagar district, 100 kms from the current Indira Gandhi International airport.

NIAL-Noida International Airport ltd, the nodal agency entrusted with the development of the new greenfield airport in the national Capital Region of Delhi, by the UttarPradesh Government had announced the successful bidder for the development and management of new airport at Jewar. Zurich Airport International AG won the bid by out pacing the three other biggies in the process by offering highest revenue share of Rs.400.91 per passenger to the nodal agency. The Per passenger revenue share will be paid by the developer from the 6th anniversary of OPERATION of the airport.

  • GMR Airports Ltd, the holder of First Right of Refusal-FRoR being the proximity operator of DIAL offered to pay per passenger share of Rs.351 followed by Adani group which offered a shade higher share of Rs.360 per passenger and Anchorage Infra & Investments bid Rs.205/ passenger.
  • The first phase of construction entails an investment of 650 Million Swiss Francs or Rs.4667 crores to begin immediately and complete the construction by 2023.
  • The first phase will utilise around 1300 Hectares of land out of the 5000 hectares total land outlay and will cater to around 12 million passengers per annum.
  • Zurich Airport International AG had a successful track record of constructing a greenfield airport in India at Bangalore, where it was the founder developer of BIAL and later sold its stake to GVK led consortium which in turn sold to Fairfax capital holdings of CANADA.

Will Jewar airport will Usher in Real estate development of the area?

The final award of the airport has evoked mixed reactions from the real estate developers of the area.The award of the airport to a foreign investor/developer is a positive sign to attract more foreign investment, the local developers too feel the rub off effect. many industry bigwigs expect  the ventures will take off in tandem with the pace of construction of the airport by the developer. indeed many ventures lined up the vicinity of the area when the project was announced way back in 2001. but the investments resulted in zero returns for the developers.

With the privatisation of the IGI-Indira Gandhi international airport in 2005 and subsequent upgrade of the airport, GURGAON, the proximity area abutting the IGI developed in leaps and bounds and is now the bustling, largest Airportcity in the country with equal ratio of commercial, residential and leisure infra development and is now the growth engine of National Capital Region-NCR.

To attain the similar development graph, the state and federal administration need to focus on delivering unencumbered land not only to the airport developer but to the local infra developers as well. Creating last mile connectivity at par with DIAL is the need of the hour around JEWAR in tandem with the airport development. This synergistic and holistic approach will surely result in transformation of another vibrant Airportcity in the National capital region.

Rambabu Vankayalapati.

 

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