If indications are anything to go by, the civil aviation infrastructure planning in Uttar Pradesh looks bleak. On the one hand, the wait for chief minister Mayawati?s ambitious pet Taj International Aviation Hub (TIAH) in Jewar, Greater Noida, is getting longer, with the group of ministers (GoM) once again postponing the July 15 meeting. The latest report on the the Jewar airport submitted by the UP government is vetted by the department of economic affairs as well as the International Civil Aviation Organisation (ICAO) and their views obtained.
In fact, one of the chief reasons for the delay is the GMR group?s stand on the project not being viable in the light of the new Terminal 3 (T3) at the Indira Gandhi International airport. They have also voiced their objection to another new airport coming up within the 150-km periphery of the Delhi International Airport (DIAL). Another major reason that is seen for Jewar Airport being constantly put on the backburner is the rather strained relationship between the Central and state government.
On the other hand, the other greenfield airport project, the Rs 750 crore Kushinagar international airport, also appears to be in the woods. The project, which has been ?sweetened? by the state government in phases, is also facing hiccups as interested developers are finding the project to be ?unviable?. The four short-listed developers are GMR, GVK, L&T and Gammon India.
It may be mentioned that the Rs 750 crore greenfield Kushinagar international airport project, which is to be built under the public-private partnership (PPP) mode on a design-build-finance-operate-transfer (DBFOT) basis, is being touted as integral for the integrated development of the entire Buddhist circuit, which is a big draw among Buddhist pilgrims from East Asia, South-East-Asia and South Asia but the lack of basic infrastructural facilities like an international airport has always been a major deterrent for a large number of tourists.
According to sources the Kushinagar airport project, despite the government?s best efforts to make the project ?attractive? by giving 250 acre of commercial land free of cost and reducing the upfront payment for the 550 acre of airport land to 10%, with the remaining 90% to be paid in 10 equal interest free installments after 13 years, as well as a host of other benefits, the developers think that the project is just not viable.
?All the four shortlisted developers are of the view that even if the government was giving everything free, the developer will not be able to recover even the capital investment and the cost of maintenance on the project till the first 15 years at least, as the traffic figures just don?t add up. The developers feel that the project is of doubtful viability and far too risky and have questioned the logic of investing in a place where it will take at least 10-15 years for the traffic figures to grow to a level where profits will start showing,? said the source, requesting anonymity.
When contacted, an advisor for the Kushinagar project denied the fact that the project has been dubbed ?unviable?, but agreed that the short-listed developers have voiced their apprehensions.