Zurich Airport outbids Adani, DIAL to develop, run Jewar airport

Our Bureau New Delhi | Updated on November 29, 2019

Agrees to pay NIAL ₹400.97/passenger using greenfield airport near Delhi

Zurich Airport has won the right to build and manage Jewar airport in Uttar Pradesh, the second facility that is to come up on the outskirts of Delhi.

Zurich Airport agreed to pay Noida International Airport Limited (NIAL) ₹400.97 per passenger using the new greenfield airport. This was the highest by any of the four bidders in the fray. The bids were opened on Friday. Adani Enterprises Limited quoted ₹360 per passenger and Delhi International Airport Limited ₹351. NIAL officials, however, said it will be wrong to say that every passenger flying through this airport will have to pay ₹400.97 apart from the cost of the air ticket.

“Zurich Airport has to pay NIAL ₹400.97 per passenger. The operator will have to decide how much of this will be borne by the passenger,” a senior NIAL official told BusinessLine. Zurich Airport will have to pay NIAL the fee from the sixth anniversary of the commissioning of the new airport. Globally, airport operators apportion costs among all the users, including airlines and concessionaries for parking, as also shops and eateries allowed to open up in the airport.

₹4,666-cr investment

In a statement, Zurich Airport said that under a 40-year concession, “Flughafen Zurich AG will build and manage the new greenfield airport in Jewar.” The statement added that the capital investment in the first phase is expected to be ₹4,666.35 crore or CHF (Swiss franc) 650 million during the construction period which is expected to last four years. It could take up to March 2020 for Zurich Airport to finally start work on the greenfield airport.

Jewar marks Zurich Airports re-entry into India’s airport infrastructure segment after it exited the Bengaluru airport project in 2017.

Clearances ahead

Explaining the future course of action, a senior NIAL official said, “The financial bid will be put up before the Project Monitoring and Implementation Committee on December 2. Once it gives the nod, the final clearance will come from the UP Cabinet,” adding that the entire process should be over by the mid-December.

Post the State Cabinet nod, Zurich Airport and NIAL will sign the agreement after which Zurich Airport will get six months for financial closure. The first operational phase will extend from fiscal year 2023 to FY 2027 when it will have a capacity to handle 12 million passengers annually.

Published on November 29, 2019

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