HDFC Bank provides Rs 500 crore funding to Jewar Airport project – ET RealEstate

HDFC Bank has entered into an agreement to provide Rs 500 crore funding to the upcoming Jewar airport in Greater Noida. The funds will be utilized for infrastructure development and land acquisition for the proposed airport that will be Asia’s largest. The funding will be provided at interest cost of Marginal cost of funds based lending rate (MCLR) plus 1%.

With this the Yamuna Expressway Authority that is developing the 5,000-acre airport in Gautam Budh Nagar district of western Uttar Pradesh has secured financial assistance worth over Rs 4,500 crore including a funding from Housing & Urban Development Corporation (HUDCO).

The tenure of HDFC’s loan is five years, and the funding amount can be increased later.

The project is estimated to cost over Rs 29,500 crore and the authority is looking to raise additional funds through issuance of infrastructure bonds soon.

“The HDFC funding is not linked to our future cash flows and that allows us more flexibility in terms of further fund raising. We are planning to raise between Rs 20,000 crore and Rs 25,000 crore through infrastructure bonds,” Arun Vir Singh, CEO, Yamuna Expressway Authority, told ET while confirming the story. “We have achieved the financial closure for the project’s first phase.”

The airport is billed to be the biggest in India with six runways upon completion. The first phase of the project will be spread over an area of 1,334 hectare and is expected to cost over Rs 4,500 crore. The construction work at the project is expected to start in 2021, while commencement of operations is scheduled for beginning of 2024.

ET’s email query to HDFC Bank remained unanswered until the time of going to press.

In July, the authority and HUDCO entered into a pact for financial assistance worth over Rs 4,000 crore for various projects adjoining the upcoming International Airport. These would include land acquisition and associated infrastructure development on both sides of the Yamuna expressway over the next three years. HUDCO has extended the financial support at the MCLR rate.

The Noida International Airport Ltd (NIAL), part of Yamuna Expressway Authority, has entered into an agreement with Swiss developer Zurich Airport International for the development of this airport. A concession agreement has also been inked between Uttar Pradesh government’s agency and the Yamuna International Airport Private Ltd, a special purpose vehicle floated by the Zurich Airport for the project.

The authority is planning to develop an Aerotropolis around the project including several industry-specific hubs such as pharmaceuticals, small and medium enterprises (SMEs), handcraft and a film city.

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Land acquisition for Jewar airport hits roadblock – ET RealEstate

NOIDA: Going smoothly so far, the land acquisition process in the Jewar Bangar village to relocate over 3,600 people directly affected by the Jewar international airport project has now hit a roadblock, with 164 of the 224 plot owners raising objections.

While four of them have been dubbed as genuine concerns pertaining to incorrect entry of birth record, value of assets such as borewell or boundary wall, the remaining are over the rate of compensation being awarded. Instead of Rs 2,680 for a sqm, these land owners are demanding a minimum of Rs 3,180 a sqm, citing the additional Rs 500 per sqm being given to the residents of six villages affected by the airport project.

The development of a township over some 48 hectares in Jewar Bangar is the last task for the district administration in order to rehabilitate the 3,627 families affected by the airport project. In the absence of any resistance, the administration had declared the process of handing over award to the landholders on August 21 under the land acquisition act. Some 224 title holders were identified for compensation in lieu of land.

But now 164 of them have raised objections. The logic behind this demand is proximity to the 48.1-hectare land in Jewar Bangar to the urbanised Azad Chowk, the sub-division’s commercial hub.

Sarpanch of Gopalgarh village, Yogesh Talan, said,

“The circle rate of Jewar Bangar area was last revised in 2013-14. Moreover, the prevailing market rates hover close to Rs 20,000 for a sqmt in Azad Chowk. Also we are entitled to additional compensation of at least Rs 500 per sqm. We will launch an agitation if the administration does not increase the amount by at least Rs 500 a sqm.”

“The government can only take a call on the additional Rs 500 per sqm. We have offered them the highest rate as per the norms,” additional DM (land acquisition) Balram Singh said.

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YEIDA to get Rs 4,000 crore loan for acquiring land, infrastructure projects – ET RealEstate

NOIDA: The state-owned Housing and Urban Development Corporation (HUDCO) on Wednesday signed a memorandum of understanding (MOU) with the Yamuna Expressway Development Authority (YEIDA) to lend the authority Rs 4,000 crore over a period of three years.

YEIDA officials said this amount will be utilised for land acquisition in areas around the upcoming Jewar airport, development of industrial estates, Electronic City and housing projects, as well as for associated infrastructure development of other urban facilities on both sides of the Yamuna Expressway. This development will optimise usage of adjoining areas adjacent to the upcoming Jewar airport and insulate the airport buffer areas against encroachment, sources said.

The MOU has been signed between YEIDA chief Arun Vir Singh and HUDCO chairman and managing director M Nagaraj. Land acquisition will be done in 1,187 villages which have already been notified by YEIDA, starting from Gautam Budh Nagar, Bulandshahar, Aligarh, Mahamaya Nagar (Hatras), Mathura and Agra. The development plan has been chalked out for completion within three years.

“Unlike other airports, which soon face issues of encroachment after coming up, we will develop the adjoining areas for productive use. The entire project cost may go up to Rs 8,000 crore. The HUDCO loan will help us finance it partially and we will generate the remaining amount from our resources. The main purpose of the funding is the execution of the construction of Yamuna Expressway, acquisition of land and area development,” Singh told TOI.

A zonal plan has already been created, according to which four sectors will be developed around the upcoming Jewar airport to help build facilities to support the airport. Development of drainage, feeder roads, electrification, and other facilities in the area will also be supported by this fund.

“The development plan will be submitted to HUDCO after approval of the NCR planning board. They will release the funds in three phases. The project development will start after the land purchase,” Singh said.

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Yamuna authority to raise Rs 5000 crore for development around Jewar airport – ET RealEstate

The Yamuna Expressway Industrial Development Authority (YEIDA), the nodal agency for the development of residential and commercial land near the upcoming Jewar airport, has signed an agreement to raise Rs 5000 crore in three years.

The funds will be provided by the Housing and Urban Development Corporation Limited (HUDCO) and will be used for land acquisition around Jewar airport and development of industrial estates, Electronic City and housing projects.

“We have signed an Memorandum of Understanding (MoU) with HUDCO and this will expedite the development work around the airport and we will acquire more land for future development,” said Arun Vir Singh, CEO of the authority.

As per the MoU signed on Thursday, YEIDA will require Rs 4000-5000 crore for development around the Jewar airport.

The Uttar Pradesh government has earmarked about 5,000 hectares of land in Jewar on Yamuna Express for an aviation and transport hub. About 1,300 hectares of land has been handed over to Zurich Airports for the development of the airport in the first phase.

“Outside the 1300 hectare land parcel, an aviation hub is planned where we will have hotels, MROs and other establishment related to aviation. We need to acquire land for that and financing by NBCC will help us in achieving the expansion plan,” Singh added.

Uttar Pradesh government has attracted more than Rs 1,500 crore of investments by allotting land close to the upcoming aviation facility to interested companies during the lockdown period.

YEIDA has allotted 17 plots to different companies, which will provide employment to about 25,000 workers.

The authority also expects to collect Rs 600 crore from the auction of land marked for hotels and office space.

Similarly, there will be an auction of land for petrol pumps, shops, offices, kiosks and about 1,000 residential plots.

Concessionaire has the right to develop commercial space, including hotels and office space, within the space provided to them.

Zurich Airports has won the contract to build and operate Jewar airport, which will act as the second airport for Delhi, for a period of 40 years, including construction period of four years in the first phase.

The Jewar airport is expected to start operations around 2023-24, by when the existing airport is set to exhaust its capacity of more than 100 million.

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