GoM to decide on Gr Noida airport

The Cabinet today decided to refer the Greater Noida airport project to a small group of ministers (GoM), which will look into several issues, including Delhi airport operator DIAL's objections to the project.

The 10 objections raised by Delhi International Airport Ltd (DIAL) included the Uttar Pradesh government's intention to give tax sops to the airport. It mentioned the objections in a note to the Cabinet when the proposal was sent for approval.

One of the points DIAL raised was that there was no mention of a second airport so close to Delhi when it signed the request-for proposals for the development of Delhi airport. This was clearly mentioned in the case of the airport at Navi Mumbai.

DIAL's other contention was that there was no need for the UP airport when the present Delhi airport would not reach saturation point in the next few years. DIAL estimates it will be able to handle 100 million passengers annually by 2026, while traffic is projected to grow to only 80 million.

Under the airport infrastructure policy of 1997, no new airport should be developed within an aerial distance of 150 km of an existing airport. However, a greenfield project can be permitted if the existing airport is unable to meet the traffic requirements. Jewar, where the new airport is being developed, is around 72 km from Delhi airport.

Also, DIAL has the right of first refusal vis-a-vis the upcoming project.This means that in case DIAL's bid is within 10 per cent of the best bid, it will get a chance to match it.

Greater Noida airport is to be developed over 1,500 hectares at a cost of Rs 3,505 crore through a public-private special purpose vehicle.

According to estimates by the state government, the airport will eat into over one-third of Delhi's total projected traffic (82.7 million) by 2026, and by 2036, when DIAL expects to handle nearly 100 million passengers, it will attract 82.7 million passengers. By 2036, Greater Noida airport expects to divert half of Delhi's traffic (49.8 million against 100 million).

The GoM will comprise Finance Minister P Chidambaram, Law Minister HR Bhardwaj, Union minister of state for Science and Technology Kapil Sibal and Civil Aviation Minister Praful Patel.