Update On Upcoming Airports In India And Their Impact On Real Estate
India owns some state-of-the-art airports and more are on their way to boost the air connectivity between cities and ease congestion in existing airports. The Chairman of AAI, R K Srivastava, recently emphasised on the need for 200 operational airports in the country. The Airports Authority of India (AAI) is all set to improve the country’s civil aviation infrastructure and plans to develop 50 new airports in the next ten years. Nonetheless, there is one area which needs serious attention from the government’s end — thoughtful planning and implementation of such infrastructure projects in India.
Update on airport projects
Greater Noida Airport, Uttar Pradesh
The Greater Noida airport is another landmark project which would come up at Jhevar, around 60 kilometres from Delhi. However, the UP government is facing bottlenecks owing to lack of funds that has brought the airport project to a grinding halt. A senior AAI official has stated that the UP government has apparently insufficient funds to even perform an 'obstacle study' at the proposed airport site. The study, which would cost over few lakhs, will involve analysis of any probable hindrances in flight movements.
This airport project was proposed in 2001 under the leadership of then CM Rajnath Singh. Following this, the Former CM Mayawati successfully acquired 2,000 acres for the same.
Navi Mumbai International Airport, Navi Mumbai, Maharashtra
The construction of the Navi Mumbai International Airport project will begin on full-fledged scale in few months. Even, this project faces challenges in pre-development and site preparation activities such as ground levelling, flattening of hills and hillocks and clearing of green patches. CIDCO(state-run City and Industrial Development Corporation), the nodal agency monitoring the project, has rolled up its sleeves to undertake the task.
Bhogapuram Airport, Visakhapatnam: The Andhra Pradesh Government is awaiting environmental clearance from the Ministry of Environment and Forest and hopes to seek potential developers for bids for the project in the coming months. The AP government official recently referred to possible restrictions imposed by the ministry on the amount of commercial area, which could clash with the bidding process. Once clearance is received, there would be no hurdles in going further with the bidding. The land acquisition process for this 2,600 acres is expected to complete by April this year.
Aranmula International Airport, Aranmula, Kerala: This airport project which was promoted by KGS Group, was stalled when Kerala government cancelled all orders related to the proposed project owing to protests by environment groups and local citizens.
Kavali Airport, Nellore, Andhra Pradesh: The airport project has faced a roadblock because of government’s focus to shift the project to economic zones (SEZs) and industrial hubs located in the Krishnapatnam and Gudur areas. Kavali Airport is located at Dagadarthi near Kavali in Nellore district. Officials are now considering acquisition of 1,200 acres of land near Krishnapatnam, Sarvepalli, and Venkatachalam in coordination with Andhra Pradesh Industrial Infrastructure Corporation.
Kannur International Airport, Kerala: Kerala’s second Greenfield airport is set for commissioning in September this year. A project official stated that plans to acquire 80 hectares of land for extending the runway to 4,000-metre is underway. Besides, other tasks such as development of roofing of integrated terminal building, service roads and full-length parallel taxiway as well as tender formalities for proposed ₹ 25 crore state-of-the-art automated cargo complex.
Impact of new airport projects on Real Estate
Development of new airports in any area is likely to boost the city’s real estate development. Presence of an airport will enhance city’s image as a business destination thus increasing demand for commercial real estate as well. Moreover, greater commercial activity in a locality will mean higher employment opportunities, which directly augments scope for rental housing.