GMR may drag Greater Noida airport to Court

GMR Group, India's front-runner infrastructure company is eyeing tomorrow's Group of Ministers (GoM) meeting that will decide the fate of newly proposed International airport likely to be set up at Greater Noida as per official sources informed.

GMR, that has the right of modernising the Delhi based ‘Indira Gandhi International Airport’, on Delhi-Gurgaon road is looking for the results of the proposed meeting scheduled on Thursday to decide weather the new airport would be set up in Greater Noida or not.

If the meeting seals ‘yes’, GMR may go to the court for saving its ‘financial welfare’ and for violating the DIAL agreement against Airport Authority of India that was held between GMR and Airport Authority of India at the time of finalising the agreement of ‘IGI airport modernisation’.

According to aviation rule, “No two Greenfield airports could set up within 150 km of area, except exceptional condition.”

The GoM headed by Finance Minister P Chidamabram will try to legalise the proposed airport to eradicate any possible legal obstacle on Thursday. Law Minister H R Bhardwaj, Civil Aviation Minister Praful Patel along with several science and legal experts will be the part of GoM meeting.

Earlier the Central Government has tied the knot with UP CM Mayawati to construct an International Airport at greater Noida when Mayawati came first time in Delhi after owning the CM chair.

As the current indication shows that Centre is willing to permit the proposed airport and removing all the legal obstruction, it would likely to make an ordinance. In this exchange, GMR may ask compensation package in loss of business and revenue.

Experts believes that this new airport may only attracted 5% passenger traffic and 8% goods traffic in the first phase from IGI while DIAL (the joint venture between GMR and Airports Authority of India upgrading the Delhi airport) has the right of first refusal with regard to a second airport within a radius of 150 km from Delhi airport within a margin of 10% as per deal signed by both the authority.

This ‘right of first refusal’ will also be considered by the GoM tomorrow. As it is known that IGI airport is only 68 km far from the proposed airport; if GoM approves it without covering it with legal shields, it may face serious legal challenge in the court for ‘violating the aviation rule’.