Jewar airport: DIAL lost to Zurich by ₹10 per passenger

GREATER NOIDA: The Delhi International Airport Limited (DIAL), which operates the Indira Gandhi International Airport (IGIA), lost the bid to build the Jewar airport by a mere ₹10 per passenger to Zurich Airport International AG.

“DIAL had an edge under the right of first refusal, because Jewar was within a 150km radius of Delhi’s Indira Gandhi airport. DIAL bid ₹351 per passenger, which was below even Adani’s bid of ₹360 per passenger,” said Arun Vir Singh chief executive officer, Noida International Airport Limited (NIAL).

As per a proximity agreement, DIAL was eligible for a special privilege. If its bid was within 10% of the highest bid received, DIAL would have got the right to match the offer. In this case, Zurich’s bid was ₹400.97, and DIAL would have been eligible for the right of first refusal if it had bid ₹361, which is 10% less than Zurich International’s.

However, at ₹351, it fell ₹10 short of that mark

“If DIAL had bid ₹361, it would have got the right to match Zurich’s offer for the Jewar airport because of the privilege the company had, unlike Adani,” Singh said.

“So, 10% of Zurich’s bid of ₹400.97 would be an amount higher than ₹40. If DIAL’s bid had been ₹361, they would have been asked to match the offer,” the official added.

NIAL officials, however, are upbeat that an international firm had won the bid.

“This is the first time a completely foreign firm has won a bid for an airport in India. It is also the highest per passenger rate that has been offered for an airport in India. This project will benefit all of Uttar Pradesh,” Singh said.

Before this, the highest rate paid was by the Adani Group, who had taken over the operational Ahmedabad airport at a rate of ₹177 per passenger.

Zurich Airport International AG, the concessionaire for Jewar airport, said the project will help Prime Minister Narendra Modi’s vision of moving towards a ₹5 trillion economy.

“In view of the population growth, this project will help spur growth in Uttar Pradesh. The region has a lot of industrial projects and good infrastructure, which will also benefit the project,” Daniel Bircher, CEO, Zurich International AG, said.

The UP government will now complete paperwork and sign an agreement with Zurich International AG after December 2, when the project monitoring and implementation committee sends its recommendations as per process, officials said.