Indian banking giant lends might behind Jewar airport

The Jewar airport is expected to significantly bring down the load on Delhi's Indira Gandhi International Airport

Indian banking giant lends might behind Jewar airport
Design of the arrival section of the Jewar airport. Image courtesy: NIAL

Yamuna International Airport Private Limited (YIAPL) received the final credit sanction for Rs 3,725 crore from the State Bank of India (SBI) for the development of Noida International Airport (NIA) at Jewar. The funding is a crucial milestone for the Jewar airport project as it validates the financial viability of the project while also outlining the next steps for the establishment of the airport.

Christoph Schnellmann, Chief Executive Officer, YIAPL, said, "We are extremely delighted to partner with the State Bank of India, the country’s largest bank, for financing the development of the Noida International Airport. The entire loan of Rs 3,725 crore has been underwritten by SBI on a door-to-door loan tenor of 20 years. We look forward to working closely with SBI to develop NIA as a world-class airport in India. The project will not only boost the Indian economy but will also help in employment generation in Uttar Pradesh and Delhi-NCR region."

The airport is being developed in close partnership with the government of Uttar Pradesh and government of India. The UP government’s continued support of the project has been vital in the process so far. YIAPL now looks forward to the conclusion of the UP government’s resettlement and rehabilitation process and the start of construction of the airport. This partnership will bring progress to Uttar Pradesh and will bolster Indian aviation’s growth story, providing a platform to stage a recovery after the Covid battering.

Also read: Can Jewar airport be India's cultural gateway?

Zurich Airport International AG (ZAIA), a fully owned subsidiary of Flughafen Zurich AG, is the main shareholder of YIAPL and is injecting Rs 2,005 crore into the development of the NIA. With this significant foreign direct investment (FDI), ZAIA consolidates its role as a leading global airport operator with experience in three continents, a benchmarked quality and innovation and successful global projects. The investment substantiates ZAIA’s strong belief in India’s growth story and its commitment to invest and support India’s national agenda through infrastructural development and job creation.

According to officials, construction will start in 2021 and operations at the airport are expected to kick off from 2024. Once the airport is completed, it will be the third airport in Delhi-NCR after Delhi's Indira Gandhi International Airport (IGIA) and Ghaziabad’s Hindon Airport.

The airport is planned to have five runways when fully complete, which would bring it at par with global airports like Hartsfield–Jackson Atlanta International Airport and George Bush Intercontinental Airport in the US and Shanghai Pudong International Airport in China. According to a report in The Times of India, there would be two runways in the first phase.

The airport is to be constructed over 4,752 hectares over the next 20 years.  

Also read: Covid-19 fails to hinder Jewar airport's steady progress

The Jewar airport is expected to accommodate 12-16 million passengers per year. This will increase to 70 million passengers annually by 2050, according to a News18 report. The Delhi airport is set to exhaust its annual carrying capacity of 100 million passengers by 2023-24. The Jewar airport is expected to significantly bring down the load on the IGIA.

The king-sized project has already started to attract crores of investment, with the potential of creating lakhs of jobs. It would be a massive push for the industrial development of the region and the country as a whole. Real estate, logistics, warehousing, tourism and transport infrastructures would be particularly strengthened and micro, small and medium enterprises (MSMEs) would get a leg up. The Jewar airport would also see a burgeoning population around the project site.