March 18, 2024: Delhi Lieutenant-Governor VK Saxena on March 15, 2024, approved the establishment of a Special Economic Zone (SEZ) and Free Trade Zone (FTZ) spanning 5 acre at the Indira Gandhi International (IGI) Airport. This move is anticipated to significantly bolster the capital’s economy. Saxena endorsed the proposal, recognising the strategic significance of developing an FTZ/SEZ at the airport hub, contingent upon the Delhi Development Authority’s approval in accordance with the provisions of MPD-2021.
The SEZ is projected to stimulate economic activities such as exports, warehousing, trading and related services at the Airport complex. Additionally, it aims to streamline procedures such as applications, licensing, clearances and regulations, thereby reducing bureaucratic hurdles. Entrepreneurs are expected to benefit from tax incentives.
India’s ministry of civil aviation has designated Delhi as a Pilot Air Cargo Hub, necessitating infrastructure upgrades to Tier 3 level. While Delhi International Airport Limited (DIAL) has already developed Tier 1 and 2 infrastructure with two cargo terminals and logistics centres, achieving Tier 3 status requires the establishment of an SEZ/FTZ at the Airport complex.
DIAL proposed establishing two multi-product SEZs at the IGI Airport, each spanning 2.02 hectare (5 acre), and sought the Delhi government’s recommendation under SEZ Rules, 2006. Subsequently, the Industries Department, GNCTD, sought clearance from DDA. Given that the development of Delhi aligns with the Master Plan of Delhi under DDA’s purview, the Industries Department requested DDA’s input on the permissibility of such infrastructure development at Delhi Airport as per Master Plan 2021.
DDA, after considering traffic impact assessment and development control norms outlined in MPD-2021, conveyed its consent subject to regulations prescribed by the Airport Authority of India (AAI). Upon LG’s approval, GNCTD’s in-principle consent/agreement, along with DDA’s observations, will be conveyed to India’s ministry of commerce.
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