The Indian Ministry of Civil Aviation has given its approval to a proposal for the construction of a second airport in Greater Noida in the National Capital Region (NCR) that falls in the state of Uttar Pradesh (UP).
The government intends to award the contract for the development of the proposed airport to the GMR Group after securing approval from the cabinet.
GMR Group operates the capital's Indira Gandhi International Airport and was also involved in the construction of Hyderabad's Rajiv Gandhi International Airport.
The Economic Times quoted unnamed sources as saying that the UP government was yet to clear the project.
GMR will be given the right of first refusal (RoFR) for the Jewar airport as it will be built within a 150km radius of the existing airport in Delhi.
As per the RoFR rules, the existing airport operator will be given the right to match the lowest bid once the bidding process commences.
Indian Civil Aviation Minister Mahesh Sharma was quoted by the Indian Express as saying: "We have already acquired over 2,200 acres for the proposed airport and much more can be acquired since land availability is not an issue in that area.
"Plus, the road infrastructure till the site for the proposed Jewar airport is also adequate."
However, the government will be required to change its rules as current policy does not permit construction of a second airport within a 150km radius of an existing one unless the former is operating beyond its capacity.