Table of Contents
- Jewar Airport: Gautam Buddh Nagar administration completes land acquisition for phase-I
- Zurich Airport wins bid to develop Jewar Airport
- Jewar Airport: UP government approves Rs 1,260 crores for land acquisition
- Centre gives in-principle approval for Jewar airport
- How will the Jewar Airport impact the property market?
- How will the Jewar Airport be developed?
- Demand and supply of property near Jewar Airport
- Why the property market may not gain much from the Jewar Airport
The Noida International Greenfield Airport at Jewar near Delhi has been allotted Rs 2,000 crores, which is about half of the estimated cost of its first phase of construction, in the Uttar Pradesh Budget for 2020-21, which was presented in the state assembly by finance minister Suresh Kumar Khanna, on February 17, 2020. “The airport is expected to go operational by 2023,” Khanna said, in his speech.
Meanwhile the Gautam Buddh Nagar administration has also started disbursing compensation to farmers, in lieu of assets on their land acquired for the Jewar Airport, officials said. The first chunk of Rs 11.98 crores was transferred into the bank accounts of 272 people from the five villages of Rohi, Dayanatpur, Kishorpur, Ranhera and Parohi, the officials said. According to officials, Rs 700 crore are to be disbursed among around 8,900 people from the affected villages in lieu of assets on their land like tubewells, submersibles, vegetation and property.
(With inputs from PTI)
Jewar Airport: Gautam Buddh Nagar administration completes land acquisition for phase-I
January 29, 2020: The Gautam Buddh Nagar administration, on January 27, 2020, acquired around 18 hectares of land, completing the land acquisition for the first phase of the Jewar Greenfield International Airport. “The Gautam Buddh Nagar administration has transferred the last parcel of land acquired for the Jewar Airport to the Yamuna Authority. In total, 1,334 hectares of land has been transferred in the first phase. This chapter is closed. The first parcel was transferred on August 6, 2019. More than Rs 3,000 crores has been transferred to land owners in seven months,” district collector Brajesh Narain Singh said.
However, around two dozen villagers, who have been protesting against the land acquisition for two years now, clashed with the administration officials who were accompanied by more than 40 policemen and allegedly pelted stones at them, in which the sub-divisional magistrate got injured, a senior official said. The district administration has approached the police and an FIR was being registered against some villagers who took to violence, the official said.
(With inputs from PTI)
Zurich Airport wins bid to develop Jewar Airport
The Zurich Airport International AG has been selected as the concessionaire for developing the Jewar Airport in the National Capital Region
The Uttar Pradesh cabinet, on December 9, 2019, approved Zurich Airport International as the developer for the Jewar Airport and the construction of what is being billed the biggest airport in the country, is expected to begin in February 2020. The conditional letter of award pertaining to the Noida International Greenfield Airport, Jewar, was handed over to the CEO of Zurich Airport International AG, Daniel Bircher, on December 16, 2019,
Zurich Airport International AG has made the highest per passenger bid, for developing the Jewar International Airport, officials announced, on November 29, 2019. The Switzerland-headquartered company outbid competitors like Delhi International Airport Limited (DIAL), Adani Enterprises and Anchorage Infrastructure Investments Holdings Limited. The Jewar Airport or the Noida International Greenfield Airport is billed to be the biggest airport in India, upon completion. It will come up in a 5,000-hectare area when fully constructed and is estimated to cost Rs 29,560 crores, nodal officer for the project, Shailendra Bhatia said.
(With inputs from PTI)
PM Modi likely to lay foundation stone for Jewar airport in February 2019: Minister
January 30, 2019: The foundation stone-laying ceremony for the Jewar airport, is likely to be held between February 23 and 25, 2019,” Sharma, the MP from Gautam Buddh Nagar, Mahesh Sharma announced, on January 30, 2019. The proposed airport, the second in the National Capital Region (NCR) after Delhi’s Indira Gandhi International Airport, would cost around Rs 15,000 crores to Rs 20,000 crores and is expected to be operational by 2022-23.
(With inputs from PTI)
Jewar Airport: UP government approves Rs 1,260 crores for land acquisition
November 26, 2018: The Uttar Pradesh government has approved a fund of Rs 1,260 crores, released for acquisition of land in the first phase of airport construction, for the proposed Jewar airport in Gautam Buddh Nagar. The amount is to be spent for land acquisition and payment to the farmers concerned, according to an official document.
“The governor has approved sanction of Rs 1,259 crores, for the acquisition of land for the Jewar Airport in the financial year 2018-19,” special secretary Surya Pal Gangwar wrote, in a letter to the director of state Civil Aviation Ministry. At a meeting held in Lucknow to discuss the progress of the project, on November 14, 2018, Uttar Pradesh chief minister Yogi Adityanath had directed officials of the Noida International Airport Limited and the Gautam Budh Nagar administration, to expedite work on the airport.
A total of 5,000 hectares of land is to be acquired for the greenfield airport, estimated to cost between Rs 15,000 and Rs 20,000 crores. For the first phase of the airport, 1,334 hectares of land is required. 1,239 hectares of land belonging to farmers from six villages – Rohi, Dayanatpur, Parohi, Kishorpur, Ranhera and Banwariwas – will be acquired by the state government and due compensation will be given to them, officials said. The remaining 94 hectares of land in the region, already belongs to the government.
As on September 10, 2018, a statement from the district information office said that 3,076 farmers had agreed for the acquisition of their 1,138 hectares of land for the proposed airport. With this, Jewar MLA Dhirendra Singh has said that the administration has obtained the farmers’ consent, for acquiring almost 93 per cent of the land required for the development of phase-I of the proposed Jewar airport.
(With inputs from PTI)
US companies evince interest in Jewar airport: Minister
May 10, 2018: Uttar Pradesh health minister Sidhartha Nath Singh, who was on a five-day visit to the US, on May 9, 2018, announced that many US companies have expressed interest in the upcoming international Jewar airport. Speaking to reporters after returning from the US, the minister said, the state is ‘heading towards Global Investor Summit’.
Singh said that various companies, including the Boeing, showed interest in making a maintenance, repair and overhaul (MRO) centre at Jewar airport. Similarly, VT System evinced interest in having an MRO unit in Meerut.
(With inputs from PTI)
Centre gives in-principle approval for Jewar airport
April 24, 2018: The centre has given an in-principle approval to the proposed greenfield airport near Jewar, in Gautam Buddh Nagar, during a steering committee meeting held in New Delhi. The approval to this effect was given at the meeting on April 23, 2018, attended by principal secretary (civil aviation) SP Goyal and other senior officials, special secretary for civil aviation, Suryapal Gangwar said.
The detailed project report and techno-economic feasibility report for the project, have been prepared by Price Waterhouse Coopers. As per the report, acquisition of 1,441 hectares of land in eight villages, is proposed for the airport, which will be built on the PPP mode. The work for the project will be taken up in four phases, at an approximate cost of Rs 15,754 crores, he said.
The airport will have two runways, with a capacity to handle 70 million passengers annually and cargo handling capacity of three million metric tonnes per year. Preliminary work on the project had started in April 2017 and it is because of the coordination between the centre and the state that the in-principle approval has been accorded within one year time, he said. On July 6, 2017, the steering committee had given site clearance to the project, he said. The Yamuna Expressway Industrial Development Authority has already been made the nodal agency for this project.
(With inputs from PTI)
How will the Jewar Airport impact the property market?
Will the government’s in-principle clearance to the Jewar airport in Delhi-NCR, have any meaningful impact on the real estate market in this region, or merely provide developers with an additional tool to market their projects? We examine
Ever since the second airport for Delhi-NCR in Jewar was given an in-principle clearance, developers in the property markets of Noida and even Ghaziabad, have been trying to make the best of it, to overcome the prolonged spell of slowdown in sales. This raises a moot question: Can a domestic airport change the dynamics of the property market, in and around a radius of, say, 100 kms? An airport, no doubt, has the potential to transform the urban landscape of the region, but to assume that the airport alone can change the economy of the region, would be a misplaced presumption. The Jewar airport is no exception to this norm.
RK Arora, CMD of Supertech, welcomes the government’s move to clear the proposal for setting up an airport in Jewar. In the first phase, the government will develop 1,000 hectares of land. “Besides reducing the congestion at the Delhi Airport, the proposed Jewar airport will generate demand in the real estate sector, in Yamuna Expressway and Greater Noida,” says Arora.
Considering that the airport will be developed in phases, it will have little or no impact in the short to medium term. With a long-term outlook of 15 to 20 years, any property market is likely to seem attractive and the areas connecting to Jewar are no exception. However, with the average age of home buyers today being 40 years and above, such an outlook may not make sense, for investing in the region.
How will the Jewar Airport be developed?
It also remains to be seen, how many bidders would come forward for this public-private partnership (PPP) model. The failure of the Jaypee Group with the Yamuna Expressway, which proved to be a catalyst in their market collapse, is something that will be high on the minds of prospective bidders. These bidders will anyway commission their own feasibility study, rather than relying on the government’s projections of traffic, before making a bid.
Demand and supply of property near Jewar Airport
The economy of the region may also hinder the immediate success of the airport, as it has no major businesses and multi-national companies remain reluctant to set up their bases in this part. There are many other logistical, as well as law and order issues that need to be tackled simultaneously, in order to make the region an investment haven.
There is also a supply overhang, as the region is sitting on no less than four to five years of inventory. This leaves little scope for any appreciation in the property market, due to the upcoming airport. Moreover, the Delhi Land Pooling Policy is expected to throw open more than 55,000 hectares of land. Therefore, there will be sizeable inventory to address the mass housing segment, at competitive prices. It will also make the locations of Najafgarh, Narela and Bawana have proper Delhi address (instead of Uttar Pradesh) and will have equally good connectivity, if not better, with the already functional Indira Gandhi International Airport.
According to Nikhil Hawelia, managing director of the Hawelia Group, since Greater Noida is more developed, it will have more traction than Yamuna Expressway. “An airport is a long-term project. With the kind of inventory that is available today, the immediate impact may not be that much. However, in the long term, it can be a game changer, provided that industries are also developed in the region,” Hawelia sums up.
Why the property market may not gain much from the Jewar Airport
- Supply far exceeds the demand across Noida, Greater Noida and Yamuna Expressway.
- With the Delhi Land Pooling Policy, more housing supply is likely to be added to the pipeline, with Delhi address and closer to the Indira Gandhi International Airport.
- The five-year time frame for the first phase of the Jewar airport seems unrealistic.
- Acquisition of 3,000 hectares of land with 40 odd villages, will be a tricky affair.
- Failure of the Jaypee Group with Yamuna Expressway, will makes bidders for the airport apprehensive.
Who is constructing Jewar Airport?
Zurich Airport International AG will develop the Jewar Airport. Other companies that bid for the airport but lost to Zurich Airport included Delhi International Airport Limited (DIAL), Anchorage Infrastructure Investments Holdings Limited and Adani Enterprises.
What is the status of land acquisition for the Jewar Airport?
The Gautam Buddh Nagar administration, on January 27, 2020, completing the land acquisition for the first phase of the Jewar Greenfield International Airport, by transferring the last parcel of land to the Yamuna Expressway Industrial Development Authority (YEIDA). In total, 1,334 hectares of land have been transferred for the first phase.
What is the date for Jewar Airport inauguration?
The first phase of the Jewar Airport is expected to be completed by 2023.
How big will the Jewar Airport be?
The Jewar Airport, which is being billed as the biggest airport in the country, will come up on 5,000 hectares of land.
How many villages are there in the Jewar Airport?
Land from five villages - Rohi, Parohi, Dayanatpur, Ranhera and Kishorpur - will be acquired for the construction of the first phase of the Jewar Airport.
What is the cost of the Jewar Airport?
The cost for the Jewar Airport is estimated to be around Rs 29,560 crores.
(The writer is CEO, Track2Realty)