As the completion of the international airport at Jewar approaches, the Noida International Airport Limited (NIAL) has initiated the process of selecting a company to establish a maintenance, repair, and overhaul (MRO) hub at the site.
Set to open by the end of 2024, the airport plans to build the MRO hub on a 40-acre plot within its grounds, developed in the current phase of the airport project.
“A global tender has been issued for this project. According to the concession agreement, the MRO facility must commence commercial operations by 2030,” Arun Vir Singh, CEO of YEIDA and NIAL stated.
Additionally, the agency will release an expression of interest (EOI) next month for the development of a second MRO hub adjacent to the airport.
This hub, part of the airport’s second phase, will involve acquiring 1,365 hectares of land designated for this sector. The land acquisition process is already in progress.
NIAL officials said that they are in talks with some of the world’s top aircraft manufacturers to partner on this project.
“We are currently in talks with four major companies and urging them to invest in Jewar. The government is committed to developing the state as an MRO hub and has introduced an exclusive policy to support this,” Singh added.
To attract investments, the government has introduced a new MRO policy offering capital investment subsidies ranging from 5 to 12 per cent for companies that apply by December 31, 2024.
Singh stated, “At present, major airports in India either have no land available or very limited space for setting up MRO hangars within or near the airport. This sector holds substantial potential, as maintenance costs represent approximately 12 per cent to 15 per cent of total revenue, making it the second largest expense after fuel.”
Estimated to cost Rs 5,700 crore, the first phase of the airport, spanning 1,334 hectares, will initially feature one runway and terminal, capable of handling 12 million passengers annually.
Looking ahead, subsequent phases are anticipated to expand the airport’s capacity to accommodate 70 million passengers across two runways and terminals, with the entire project estimated to cost Rs 29,561 crore.