The Noida International Airport (NIA) in Jewar, which was originally scheduled to become operational by the end of September 2024, is now facing a revised deadline of April 2025. This delay has triggered a penalty of ₹21 crore from the Uttar Pradesh government, according to officials familiar with the situation.
Under the terms of the contract with the Uttar Pradesh government, NIA was expected to commence flight operations by September 30, 2024. The agreement provides for a grace period of 91 days, allowing the airport operator some flexibility to begin operations in full swing. However, the four-month delay beyond this period has resulted in the imposition of financial penalties. “A delay of further four months will invite penalty,” said a source close to the matter.
NIA is a wholly owned subsidiary of Zurich Airport International AG, which is overseeing the construction and operation of the airport. Currently, the runway carpeting work has been completed, and runway lights are expected to be installed within the next month. “Work on the terminal building is being completed at various levels,” an airport official said, signaling that construction is moving forward but not fast enough to meet the original deadline.
According to the concession agreement between the operator, Yamuna International Airport Private Limited (YIAPL), and the Uttar Pradesh government, a fine of ₹10 lakh per day will be imposed after the 91-day grace period if the airport is not operational by the September 30 deadline. While NIA officials are in talks with the state government to negotiate a reduction in the penalty, sources suggest that the chances of avoiding the fines are slim. “The chances of the penalty being waived off are negligible,” an official said. However, there is a possibility that ongoing discussions may result in a reduction or temporary relief for a couple of months.
When asked to comment on the penalty, an NIA spokesperson did not directly address the fine but emphasized the positive collaboration between the airport operator and the Uttar Pradesh government. “Noida International Airport embodies the true spirit of a public-private partnership. From the very beginning, the government of Uttar Pradesh has been an avid supporter of this project. We have forged a strong partnership with them, united by a common goal: to create a world-class airport for Uttar Pradesh and Delhi NCR,” the spokesperson stated. This message reflects the shared vision between the two parties, but it does not alleviate the urgency of addressing the project’s delays.
Meanwhile, Noida International Airport Ltd (NIAL), the Uttar Pradesh government’s special purpose vehicle for the project, has issued a notice to YIAPL regarding the extension of the completion timeline without prior consultation with the government. This formal notice underscores the government’s concern over the delay and signals a push for greater accountability from the project operator.
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When pressed on the reasons for the delay, an NIA official, speaking anonymously, cited multiple factors. “The delay is due to various reasons. However, one of the biggest reasons is the delay in awarding the engineering procurement and construction (EPC) contract,” the official explained. The EPC contract, critical for executing the project’s construction, was eventually awarded to Tata Projects in June 2022, but the delay in finalizing this contract contributed to the current setbacks.
The first phase of the Noida International Airport is designed to include one terminal building and one runway, capable of handling up to 12 million passengers annually. Upon completion of all four phases, the airport is expected to have a capacity to manage 70 million passengers per year, making it one of the largest airports in India. Despite the delays, the project is anticipated to play a key role in boosting regional connectivity and easing congestion at Delhi’s Indira Gandhi International Airport once it becomes fully operational.
The Noida International Airport is considered a flagship infrastructure project in Uttar Pradesh, aimed at enhancing air travel accessibility for the Delhi-NCR region and fostering economic growth in the surrounding areas. However, the current delays and subsequent financial penalties highlight the challenges involved in executing such large-scale projects on time.
As the new deadline approaches, all eyes will be on the progress of the airport’s construction and whether further delays can be avoided. For now, the airport operator faces financial consequences, with hopes that they can bring the project back on track before additional penalties accrue.
