Uttar Pradesh government and Zurich airport international have signed an agreement detailing the terms of work to begin the construction of Noida airport in Jewar. According to the terms, Zurich airport will build one runway of Noida airport in the first phase. Around 90% of the traffic on this runway will be limited to domestic flights. While Zurich airport will remain as the principal investor of the construction, it will join hands with other local partners for the work.
Noida airport may get a second investor
Zurich airport may get another financial investor at a later stage for expansion works of the airport. It currently holds 100% of the shareholding in Noida airport. The strategic objective of Zurich airport is to build a platform of airports across India during the mid-term.
According to Daniel Bircher, Chief Executive Officer of Zurich airport, the airlines that search for alternate ways to operate during peak hours in Delhi airport will find Zurich airport convenient. Jewar is located in the outskirts of Delhi. He added that it is up to the airlines to decide if to use Jewar airport for international flights. However, Jewar airport will not become an immediate competition for Delhi IGIA airport.
The COVID-19 pandemic has had an impact on the traffic projections at Noida airport. However, authorities expect the domestic travel too rebound quickly. Government has agreed to build a metro to Noida airport to connect the airport with a wider Delhi region. The planning of the same has been completed and may start the execution soon. There is a distance of 70 km between Delhi and Jewar.
The closure of works of the airport is expected to take another three and a half years. The company targets six months for the completion of financial dealings, and the remaining three years will be focused on building the airport. First phase investment for construction is around Rs. 4,500 crores. There is an area of 1,334 hectares of land.
The phase one will see the construction of one runway, 12 boarding bridges, cargo catering space and apron space. The authorities intend to provide contactless services to the passengers.
Zurich airport outbid competitors such as Adani Enterprises, Anchorage Infrastructure Investments Holding and DIAL to win the bid.