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   Vol. 14  No. 59
Wednesday July 22, 2015

Here Comes Delhi Neo

Delhi Neo
Photo shows the Yamuna Expressway from Delhi to Agra. Apartments and business and commercial complexes are coming up on two sides of the Expressway in Greater Noida.

“Air cargo business is almost nil compared to its actual potential and if we really open all our doors for cargo, Delhi roads will be choked further . . . ” So said Mahesh Sharma, Minister of State for Civil Aviation (the junior minister in the Ministry led by Ashok Gajapathi Raju, the Minister for Civil Aviation).
Raju Pusapati and Mahesh Sharma 

The Union Minister for Civil Aviation, Ashok Gajapathi Raju Pusapati with the Minister of State for Civil Aviation, Dr. Mahesh Sharma (right) releasing the calendar for 2015. 

   His words came after the civil aviation ministry approved the proposal to build a second international airport in the Delhi NCR region at Jewar in Greater Noida (the National Capital Region of the country includes the cities of Gurgaon, Noida, and Faridabad; Jewar is around 100 km from Delhi) in a meeting with officials from the ministry, the Airports Authority of India, and others. Incidentally, Sharma represents the Noida area in Parliament and is a member of the Bharatiya Janata Party (BJP), led by Prime Minister Narendra Modi.
     The civil aviation ministry pointed out that the airport would need 2,200 acres of land, which, according to Sharma, had already been acquired. More land could be acquired, he said, “since land availability is not an issue in that area . . . Plus, the road infrastructure till the site for the proposed Jewar airport is also adequate.”


Don’t Hold Your Breath

     The actual construction of the airport, however, is still a long way off. To start, the proposal will have to be cleared by the Cabinet before anything else is done. With the BJP government in power in Delhi, the proposal is likely to be passed without any hindrance. However, the obstacles could come from the state government of Uttar Pradesh (Noida is part of Uttar Pradesh), which is ruled by a party that does not see eye to eye with the BJP—in fact, it is opposed to it. The UP government wants an international airport between the cities of Agra (around 165 km from Delhi), where the Taj Mahal is located, and Mathura, 50 km away.
     Another hurdle the airport at Jewar would face would be from GMR, the operators of the Delhi International Airport. According to the agreement, the government cannot permit construction of any airport within 150 km radius of the Delhi airport. And if it did, the first right of refusal for construction and operation would be GMR.


No Problem Sharma

     For Mahesh Sharma, these issues are no problem.
     He was quoted as saying GMR would indeed be given first right of refusal, and if it refused, “we are committed to completing it in time once we put it on the drawing board.”
     There are reports, too, that the government could even change the 150-km radius rule in view of the demands from fliers and airlines.
     “Unless an existing airport is functioning beyond its operational capacity, existing rules do not allow a second airport to come up within a 150-km radius of an existing one.”


Changing Laws

     “For the new project, the government will be required to amend certain regulations," Minister Sharma said.
     The question is whether Delhi will reach saturation in the time the Jewar airport is completed—between three and five years. Airport authorities believe that Delhi is nowhere near saturation: in cargo, for example, the airport handled 0.7 million tons in 2014-15 when it has a capacity of 1.5 million tonnes. As for passengers, the airport can handle 62.5 million passengers, but it saw only 40.9 million in 2014-15.
     A second international airport for Delhi has been in the news for quite some time. Perhaps, what is more important to note is that it has been embroiled in politics. Back in 2001, when the present Home Minister Rajnath Singh from the BJP was the Chief Minister of Uttar Pradesh, he had raised the idea of an international airport around Noida. When he quit, Ms. Mayawati (from a different political party and opposed to the BJP) pushed the project. She lent her support to the government at the Centre in Delhi and in turn got the clearance for the Jewar airport.
     Today, the government in the state of Uttar Pradesh is in no mood to accept the Jewar project simply because it was promoted by a party and personality who has been its ‘worst enemy.’ And with the BJP-led government at the Centre, the signs of a protracted tug-of-war are clear. This, despite protestations from Mahesh Sharma that he was pandering to his constituents by bringing the airport to their doorsteps.


Jumping The Gun?


Amber Dubey      While two airports serving the capital city would be a godsend for fliers, aviation pundits believe the government and Minister Sharma are jumping the gun. First and foremost, Delhi airport is capable of handling more cargo and passengers for quite a few years.
     Amber Dubey, partner and India head of Aerospace and Defence at KPMG, felt that Delhi and the NCR would probably need three or more airports like London or New York, but that situation was still many years away. Since airports were costly to build and maintain, two airports in close proximity handling 1.5 million tons of cargo and 55 million passengers would create high airport tariffs for passengers. Additionally, it will also be difficult for airlines, cargo stakeholders, and others to station staff at two airports for a small demand base. He felt that the central government should get a techno-commercial viability analysis done before bowing to political demands.
     Meanwhile, property developers and housing complex builders in the Greater Noida area are the ones who are smiling. The news about the BJP minister’s initiative for the airport has suddenly seen a rise in prices in a market that had become virtually stagnant.
Tirthankar Ghosh


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