Work progress slow, Noida airport deadline deferred to April 2025

The Noida International Airport Limited (NIAL), the government agency overseeing the construction of the greenfield international airport in Jewar, has informed the Uttar Pradesh government that about 78.11% work on Noida airport has been completed, but owing to the slow pace of work on the terminal building, the project’s completion deadline of September 29, 2024, has been deferred by seven months, said officials in the know of the matter on Monday.

Now, Yamuna International Airport Pvt Ltd (YIAPL), the concessionaire, has rescheduled the completion date from September 29, 2024, to April 2025, said these officials.

One of the key reasons for the slow pace of work is the delay in procuring imported steel that is needed to build the terminal building and other associated infrastructure, said officials.

However, NIAL has decided to impose a penalty for the delay in completion of the project. As per the concession agreement, a grace period of 91 days is allowed, and after that, NIAL has the mandate to impose a penalty of ₹10 lakh per day for the period of delay, said officials.

NIAL officials said YIAPL extended the completion deadline without consulting NIAL, prompting the issuance of a notice to the company on Monday.

“YIAPL decided to extend the deadline without consulting us. We have decided to impose a penalty on the company as per the provisions mentioned in the concessionary agreement. We issued a notice and also objected to the company starting construction work on other components -- airport hotel by Roseate Hotels and the cargo terminal by AISATS -- without layout approval from the government,” said Arun Vir Singh, chief executive officer of the NIAL and the Yamuna Expressway industrial development authority.

In a statement on Monday, YIAPL clarified that the construction and development work at Noida airport is at an advanced stage and the company continues to pass important milestones on the road to operational readiness.

“This is a large and complex project, and the next few weeks of construction activities are crucial. Work on the runway, the passenger terminal and the control tower, is well advanced. Recently, the concessions for ground handling, the operation of commercial areas and important maintenance contracts were awarded. In addition, agreements have been signed with several airlines for flight connections from Noida airport,” said YIAPL in a press statement on Monday.

“In view of the current construction status, we expect to begin commercial operations by end of April 2025. We are working together with our EPC contractor Tata Projects Limited and with other stakeholders to keep the pace of construction activities and preparations for operational readiness high,” said YIAPL.

Uttar Pradesh chief secretary DS Mishra will conduct a meeting with the YIAPL and NIAL officials on Friday to review the progress of work.

In a review meeting of senior officials, Tata projects will be present to discuss about the latest developments in the airport project, said officials of NIAL.

YIAPL was established for the development, construction and operation of the greenfield airport. The company, a 100% subsidiary of Zurich Airport International AG, is responsible for the implementation of the public-private partnership project in close partnership with the Uttar Pradesh government and the Centre. The concession period commenced on October 1, 2021, and will run for 40 years, said the statement.