Jewar Airport Fined Rs 21 Crore for Delayed Opening, New Deadline Set for April 2025

Greater Noida: The Noida International Airport in Jewar, set to be operational by September 2024, now faces a penalty of Rs 21 crore due to delays in its construction. The Uttar Pradesh government has imposed the fine, and the new deadline for the airport’s opening is April 2025.

The Noida International Airport (NIA) in Jewar, which was supposed to commence operations by the end of September 2024, has been slapped with a hefty fine of Rs 21 crore by the Uttar Pradesh government for delays in meeting its original operational deadline. According to government officials familiar with the matter, the new deadline for the airport’s full operations is now set for April 2025.

As per the legal terms of the agreement, NIA was required to initiate normal flight operations by September 30, 2024, with a grace period of 91 days to complete any remaining work. However, a further delay of four months will now result in financial penalties. An official close to the project noted that the airport’s operator, Yamuna International Airport Private Limited (YIAPL), has been fined Rs 21 crore for missing the set deadline.

The Noida International Airport is owned by Zurich Airport International AG, and various stages of its development, including the carpeting of runways and terminal construction, are still ongoing. Despite the significant progress made on the runway and lighting systems, the construction has not been completed within the stipulated time frame, resulting in the delay.

YIAPL, the operator of NIA, was granted the concession to complete the project and has been granted a 91-day grace period. After this period, the penalty of Rs 10 lakh per day will be applied. NIA officials are in discussions with the Uttar Pradesh government to possibly reduce the fine, but chances of a waiver are slim, according to sources.

A spokesperson for NIA commented that the body is working closely with the state government to bring the airport to completion as soon as possible. They emphasized the strong public-private partnership that has driven the project, highlighting the state’s ongoing support and commitment to making the airport a world-class facility for Uttar Pradesh and the Delhi NCR region.

In response to the delay, the Noida International Airport Ltd (NIAL), the UP government’s special-purpose vehicle for the project, has issued a notice to YIAPL regarding the extended timeline, highlighting the lack of communication with government authorities. One of the primary causes for the delay, as explained by an anonymous NIA official, is the slow process in awarding the Engineering Procurement and Construction (EPC) contract.

In its first phase, the airport will feature one terminal and a runway, capable of managing up to 12 million passengers annually. Once fully completed in its fourth phase, NIA will have the capacity to handle up to 70 million passengers per year. The airport operator has also handed over certain parts to the Airports Authority of India (AAI) for further validation and is aiming to apply for an aerodrome license by December 2024 after completing critical validation flights.

While progress is being made, the delay has impacted the airport’s planned operational schedule, resulting in the imposition of financial penalties and a revised timeline for opening.

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