Noida airport Phase I to cost ₹5,730; NIAL calls it ‘economically feasible’
GREATER NOIDA: The estimated cost for the development of the first phase of the Noida International Airport in Jewar will be ₹5,730 crore, said Zurich Airport International AG, the concessionaire of the project.
In a statement issued on Monday, the Swiss company said that its term loan was rated stable by the India Ratings and Research which assigned an ‘A’ to its proposal. The project will be funded in debt:equity ratio of 65:35 with ₹3,724 crore to be raised through debt, and ₹2,006 crore as equity, the company said.
The Yamuna International Airport Private Limited (YIAPL), the special purpose vehicle (SPV) for the project, will get over 1,334 hectares of land to commence the construction work in Jewar by June this year. It is estimated that 44% of the estimated cost will be spent on establishing the terminal.
Officials of the Noida International Airport Limited (NIAL), the nodal agency for the project, said the stable rating assigned to the term loan of the concessionaire shows that the project’s debt structure is suitable and financially sustainable for all investors and stakeholders. “The ratings indicate that the Noida International Airport is economically feasible. It also reiterated the fact that the state government is committed to support the project, and make it sustainable and the best infrastructure,” said Arun Vir Singh, chief executive officer, NIAL.
The Swiss firm will provide 40% of its share upfront — that is little over ₹800 crore. Once all the conditions of the project are fulfilled, YIAPL will get three years to flag off the first commercial flight from the airport.
Last week, NIAL and the Gautam Budh Nagar district administration started the process of rehabilitating families affected due to the project. It is likely that the land will be handed over to the YIAPL in three to four months, the officials said.
While evaluating the YIAPL’s proposal, the rating agency was of the view that the “hybrid till approach” shall augur well for the company. Only up to 30% of the non-aeronautical revenues (parking, rentals, food and beverages, among others) can be used to cross-subsidise aeronautical charges under the hybrid till approach, which was introduced in the aviation sector in India in 2016, the officials said.