The Punjab government Thursday entered into a Memorandum of Understanding (MoU) with the Airports Authority of India (AAI) for setting up of a new civil international air terminal at the IAF station Halwara in Ludhiana.
The Punjab cabinet had given a go-ahead for signing of the MoU between the AAI and the government on December 3.
The MoU was signed by Secretary Civil Aviation Tejveer Singh on behalf of the government of Punjab and Executive Director AAI G D Gupta on behalf of the AAI in the presence of the Punjab Chief Secretary Karan Avtar Singh and Guruprasad Mohapatra, Chairman, AAI, said an official spokesman.
He said the project would be implemented through a Joint Venture Company (JVC) formed with the majority stake of 51 per cent of the AAI and 49 per cent stake of the state government thorough the Greater Ludhiana Development Authority (GLADA).
Further, the AAI would bear all capital expenditure of development of the new airport, while the state government would provide 135.54 acres of land free of cost and free of all encumbrances for the project.
The JVC would bear all expenditure on operation, management and maintenance including repairs, the spokesman said.
It is expected that phase one of the project, that is development of new international civil enclave in 135.54 acres for full-fledged operations up to Code-4C type of aircraft, shall be completed within three years.
The international airport at Ludhiana would not only be a commercially viable project and facilitate better air connectivity for passengers of the state but will have a spinoff economic benefit for the industries in the state, he said.
Another MoU was signed between the Punjab government and the AAI Cargo Logistics and Allied Services Company Limited (AAICLAS), a wholly owned subsidiary of the AAI for operation and maintenance of the cargo terminal at Amritsar Airport, the spokesman said.
As per the MoU, the AAI will take over the Centre for Perishable Cargo (CPC) facility at Amritsar airport which has been in-operational since 2013 and operate and manage it, he said.
It will give a boost to agri-exports of Punjab and neighbouring states as cargo flights are expected to start in the near future, the spokesman said.
The MoU was exchanged by MD Punjab Agro C Sibin and Keku Bomi Gazder, CEO AAI Cargo Logistics and Allied Services, he said.
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