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New Delhi: Zurich Airport International AG on Saturday signed a shareholder agreement with the Noida International Airport Limited (NIAL) for the development of an airport at Jewar, Uttar Pradesh.

According to the shareholder agreement, NIAL will hold one golden share in Yamuna International Airport Pvt Ltd (YIAPL) -- a 100% subsidiary of Zurich Airport International AG -- and the right to nominate two directors to the board. YIAPL had been incorporated as a special purpose vehicle (SPV) to develop the greenfield Noida International Airport, on the outskirts of Delhi.

The directors to be added to the board are Arun Vir Singh, chief executive of NIAL, and Vishak Iyer, Director Civil Aviation, Government of Uttar Pradesh, NIAL said in a statement.

“The signing of the shareholder agreement is the next step in the direction of progress for the state. Noida International Airport will be the benchmark for a modern, world-class airport in India," Yogi Adityanath, chief minister of Uttar Pradesh said in a statement.

"It will accelerate the development of industrial infrastructure, boost tourism, promote exports, ease air traffic and lead to creation of more jobs in the state," he added.

The first phase of the project is due to be operational by 2023, when it will handle 12 million passengers per year, said an official of Noida International Airport Ltd (NIAL).

Zurich Airport has earlier pipped three bidders—the GMR Group-led consortium comprising Delhi International Airport Ltd (DIAL), Adani Enterprises Ltd and Anchorage Infrastructure Investments Holdings Ltd -- by offering the highest bid for the airport project.

While Zurich Airport offered a revenue share of 400.97 per passenger, GMR Group-led DIAL, which had the right of first refusal, offered 351. Adani Group and Anchorage’s bids stood at 360 and 205 per passenger, respectively.

Zurich Airport said it will design, develop and operate the new greenfield airport in Jewar under a 40-year concession.

It will invest 650 million Swiss francs ( 4,663.731 crore) for the first phase, which will take four years to be completed.

The Jewar airport will be the National Capital Region’s third, after the Indira Gandhi International Airport (IGIA) and Ghaziabad’s Hindon. The new airport will be 100 km from the GMR Group-operated Delhi airport, the capital’s only international airport so far.

The second phase of the Jewar airport is due to be completed by FY31 and will increase its capacity to 30 million passengers per year, while the third and fourth phases are due to be finished by FY36 and FY40, respectively, further enhancing its capacity to 50 million and 70 million passengers, respectively.

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