Noida International Airport: 1000-Acre Aviation Hub Planned In Second Phase, Global Tenders For MRO Facility Soon


Following the approval of the new Foreign Direct Investment (FDI) policy by the Uttar Pradesh Cabinet, Noida International Airport Limited (NIAL) authorities have announced their plans to establish an aviation hub in the second phase of the International Airport at Jewar.

NIAL – which is a joint venture of UP government and the implementing agency of the airport, is working to allot a 1000-acre area for the project, writes Indian Express.

Dr. Arun Vir Singh, the CEO of Noida International Airport Limited, said, “For the second phase of the Noida International Airport, we have acquired 1,365 hectares of land, primarily intended for the Maintenance & Repair and Overhaul (MRO) hub, and the Aviation hub. We will soon invite Expressions of Interest (EoI) for the MRO facility. Further, we have decided to allocate 1,000 acres out of the acquired 1,365 hectares for the development of the aviation hub.”

Singh further stated that the aviation hub will serve as a center for aircraft assembly, engine manufacturing, nozzle production, and other related activities, with participation expected from prominent aircraft equipment manufacturing companies.

The scheme for the aviation hub will be issued in November by NIAL, with PwC, a consulting firm, tasked with developing its layout. Once the layout is finalized, it will be presented for approval at the NIAL board meeting.

Singh also mentioned significant foreign interest in the aviation hub.

“We have engaged in discussions with several foreign companies through the US embassy, and they are keen on contributing to the development of the aviation hub in India. The new FDI policy will facilitate this initiative, as it offers a 75 per cent land subsidy, making it a favorable opportunity for establishing aviation manufacturing facilities in the country,” added NIAL CEO.

Under the new FDI policy, overseas investors will receive several incentives, including exemptions in land acquisition, stamp duty, and capital investment. Companies will benefit from a 75 per cent land subsidy, capital subsidies of up to 100 crore, and a 100 per cent state GST reimbursement for a decade. Additionally, government reimbursements for training and skill development expenditures are also part of the policy.

Further, the Yamuna Expressway Industrial Development Authority (YEIDA) is likely to float a global tender for the development of an aircraft MRO facility at the Noida International Airport in this month, officials aware of the matter said.

Once the global tender is issued, the MRO development process is expected to take 2-3 years following the necessary procedures.

First Phase To Be Ready By 2024

The upcoming greenfield airport at Jewar in Gautam Buddha Nagar district in Uttar Pradesh will enhance domestic as well as international connectivity to and from Delhi-National Capital region (NCR), Noida and Western Uttar Pradesh.

The NCR’s second international airport will be developed in four phases, with two interconnected terminals and an annual passenger capacity of 70 million.

The first phase spread over 1,334 hectares will have a 3,900-metre runway with a capacity for 28 aircraft stands, cargo hub along with a passenger terminal spanning an area of 100,000 square metres that will cater to domestic and international passengers.

As per the concession agreement, the first phase for 12 million passengers per annum is to be completed and made operational by September 2024.

The Noida airport is being developed by Yamuna International Airport Private Limited (YIAPL), a wholly-owned subsidiary of Zurich Airport International AG, in partnership with the state government.

Zurich Airport International AG won the bid to develop Noida International Airport in 2019 and the concession period officially commenced from 01 October 2021.

Following the ground-breaking ceremony by Prime Minister Narendra Modi in November 2021, the first phase of the airport is expected to become operational before its scheduled deadline of 29 September 2024.

According to the latest status report of the project, the runway and the air traffic control (ATC) tower of the Noida International Airport are expected to be ready by March 2024.