JEWAR- The Noida International Airport (NIA) in Jewar has postponed its operational launch from September 2024 to April 2025. This delay triggers a ₹21 crore ($2.5 million) penalty from the Uttar Pradesh government, according to UP officials familiar with the situation.
The original agreement mandated NIA to commence normal flight operations by September 30, 2024. The contract allows a 91-day grace period for the airport operator to fully initiate flight operations. The additional four-month delay beyond this grace period incurs the penalty, HT Reported.
Noida Airport Fined for Delays
NIA, a subsidiary of Zurich Airport International AG, has made progress on construction. The runway carpeting is complete, with runway lights scheduled for installation within a month. The terminal building construction continues at various stages.
The concession agreement between Yamuna International Airport Private Limited (YIAPL), NIA’s operator, and the UP government stipulates a ₹10 lakh daily fine after the grace period. NIA officials are negotiating with the state government to reduce the penalty, but prospects appear slim.
The penalty will be enforced from September 30, with minimal chances of waiver. Officials suggest potential negotiations might reduce the penalty period by a few months.
NIA’s spokesperson declined to comment to HT on the penalty but emphasized close collaboration with the Uttar Pradesh government. The airport project is described as a public-private partnership, with the state government’s strong support from inception.
Reasons for Delay
An anonymous NIA official attributed the delay to multiple factors, primarily the late awarding of the engineering procurement and construction (EPC) contract. Tata Projects received this contract in June 2022.
The airport’s first phase will feature one terminal building and runway, accommodating 12 million passengers annually. The completed fourth phase aims to handle 70 million passengers per year.
Construction progress includes the ongoing completion of the air traffic control (ATC) building. The airport operator has allocated a portion to AAI vendors for parallel work.
YIAPL plans to apply for an aerodrome license in December, following critical validation flights in the coming weeks. This timeline indicates the project’s advancement despite the delay and associated penalties.
First Test Flight
In April 2024, NIA conducted its inaugural calibration flight to ensure the smooth operation of its navigation systems.
A calibration flight utilizing a Beechcraft King Air B300, aimed at verifying the efficiency of the navigation equipment by the Airport Authority of India (AAI), took off from the Noida International Airport.
Last year, NIA forged a partnership with IndiGo (6E) as the airport’s inaugural carrier, and recently, Akasa Air (QP) entered into a strategic collaboration with NIA.
The central government has also set an ambitious goal of achieving 10 million tonnes of air cargo by 2030. Currently, 90 percent of India’s international cargo volumes are handled by non-Indian carriers.
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