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Jewar International Airport to be a Growth Catalyst in the Region

Jewar Airport expected to create infra, generate jobs

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Jewar airport
The Jewar international airport is expected to increase the employment rate in the region. (Representational Image). Lifetime Stock

BY ROHIT VAID

The upcoming International Airport at the Jewar township of Greater Noida is expected to be a growth catalyst for the region, say industry analysts, as the project is expected to create urban infrastructure and generate jobs.

Accordingly, experts have predicted the project to not only boost the aviation industry but also a host of other sectors such as real estate, hospitality, tourism, transportation and construction.

“Jewar Airport will provide an impetus to the real estate sector in Noida, Greater Noida and Yamuna Expressway,” JLL India’s Chief Economist Research and REIS Samantak Das told IANS.

“Real estate developers and corporates will be encouraged to invest in commercial real estate in the region. It would lead to a jump in investment and infrastructural development leading to rising in demand for both residential and commercial properties.”

Jewar airport project
Experts have predicted the Jewar international airport project to not only boost the aviation industry but also a host of other sectors. (Representational Image). Lifetime Stock

Additionally, Das pointed out that apart from residential, commercial and residential segment, the demand for logistics and warehousing sector is expected to get a boost by development of Jewar Airport.

“It will also lead to growth in manufacturing and exports sector. Since the region is also near to tourist attractions such as Taj Mahal, Mathura, the tourism sector will also be positively impacted by the development of the airport,” Das said.

ANAROCK Property Consultants’ Vice Chairman Santhosh Kumar, said: “As far as job creation and value addition is concerned, the project will definitely give a major boost in the future.

“But again, this also depends on actual ground implementation of the project. As and when the project progresses, it will help revive the property market in nearby areas like Noida, Greater Noida and Yamuna Expressway.”

Besides, Kumar expects the new airport to increase demand for the housing sector and even lead to an uptick in terms of commercial activities including office spaces and retail.

“More and more office spaces will erupt along the region as rentals will be relatively cheaper than Gurgaon and even Delhi,” he said.

Aviation industry insiders, including airline executives, said that the new airport, once fully developed, will aid in decongesting the Delhi’s IGI Airport.

“It will definitely expand the reach of air services to a larger population base of the NCR region,” an airline management executive told IANS.

Locals of the Jewar township told IANS that they expect more employment opportunities arising out of the airport development.

Jewar international airport
Aviation industry insiderssaid that the new airport, once fully developed, will aid in decongesting the Delhi’s IGI Airport. (Representational Image). Pixabay

“Future generations will be able to reap more employment opportunities as a direct result of the airport development,” Ashok Kumar, a resident of Ranhera village of Jewar township told IANS.

“Employment opportunities in transport and hospitality sectors are being scouted even by the current working generation.”

However, others like Naipal Singh of Rohi village, though supportive of the project is not satisfied with the compensation given by the state government for acquisition of his land parcel for the airport project.

Last month, Zurich Airport International AG was selected as the concessionaire for developing the airport at Jewar.

The company, headquartered in Switzerland, made the highest per-passenger bid for the airport. The Swiss company operates the Zurich Airport, and eight airports in Latin America.

“Under a 40-year concession, the Flughafen Zurich AG will build and manage the new greenfield airport in Jewar. The new airport will be located around 80 km south of Delhi and will be fundamental to accommodate the expected flight traffic growth rates in the National Capital Region,” the company had said.

“The capital investment associated with the first phase is expected to amount to roughly CHF (Swiss francs) 650 million during the construction period of approximately four years. The first phase will be able to accommodate around 12 million passengers per year,” it added.

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The Noida International Airport will come up in a 5,000-hectare area and is estimated to cost around Rs 30,000 crore.

The first phase of the airport will be spread over 1,334 hectares and cost Rs 4,588 crore. It is expected to be completed by 2023. (IANS)

Next Story

Here’s Why Coronavirus May Have Severe Impact on Asia’s Economy

This time around Chinese tourism matters even more to Southeast Asia

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Coronavirus
The Coronavirus outbreak, which has so far caused 41 deaths in China, and caused the country to quarantine 16 cities, is causing comparisons to the 2003 spread of severe acute respiratory syndrome, or SARS, which decreased the value of the global economy by $40 billion. VOA

Southeast Asia’s proximity to China and dependence on that nation for a major share of its economy is raising concerns that the coronavirus outbreak  that started there will not only have health impacts but harm the region’s economies.

The outbreak, which has so far caused 41 deaths in China, and caused the country to quarantine 16 cities, is causing comparisons to the 2003 spread of severe acute respiratory syndrome, or SARS, which decreased the value of the global economy by $40 billion.

“Now that the Wuhan coronavirus has been found to be able to be transmitted from human to human, the economic consequences could be extremely concerning for the Asia-Pacific region,” Rajiv Biswas, IHS Markit Asia Pacific chief economist, said.

Sectors of the economy that are particularly vulnerable to a SARS-like virus epidemic that can be spread by human-to-human transmission are retail stores, restaurants, conferences, sporting events, tourism and commercial aviation,” he said.

Observers agree that tourism could be one of the hardest-hit industries, in part because of the millions of Chinese who usually travel now, during the Lunar New Year, and in part because China has grown so much in the last two decades that many neighboring nations depend on it for tourism.

That is only one of the economic differences between China today and the China of the SARS virus in 2003.

Coronavirus
The recent coronavirus outbreak originating from China to other countries including Singapore may impart some uncertainty to near-term business and consumer sentiments. VOA

China has since then become a member of the World Trade Organization and the second-biggest economy in the world. Its supply chain has become more integrated with the rest of the world than it has ever been, and it has become the biggest trading partner for many countries in the region.

The 2003 virus decreased China’s economic growth rate, but its effect was the same for Malaysia, Singapore, and Vietnam, Biswas said.

This time around Chinese tourism matters even more to Southeast Asia.

After Hong Kong, nations for which Chinese visitors’ spending accounts for the biggest share of gross domestic product are, from most to least, Cambodia, Thailand, Singapore, Vietnam, and Malaysia, according to statistics released by Capital Economics, a London-based research company, Friday. In many of these nations, businesses catering to tourists display signs in Chinese, accept China’s yuan currency, and use that country’s WeChat for mobile payments.

Major tourism events in the region add to the threat that the virus and its economic impact will spread, such as the Tokyo Summer Olympics, Biswas said. Vietnam will also host the Vietnam Grand Prix Formula One race this year, while Malaysia will host the Asia-Pacific Economic Cooperation forum.

Singapore is an island nation that depends heavily on foreign trade, including to facilitate trade and investment in China. Selena Ling, head of treasury research and strategy at Singapore’s OCBC Bank, said Friday she was expecting Singapore’s economy to stage a modest recovery from 2019, but that may change.

Coronavirus
Southeast Asia’s proximity to China and dependence on that nation for a major share of its economy is raising concerns that the coronavirus outbreak  that started there will not only have health impacts but harm the region’s economies. VOA

She said “the recent coronavirus outbreak originating from China to other countries including Singapore may impart some uncertainty to near-term business and consumer sentiments.”

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That could mean slower growth in the first quarter of 2020, she said. (VOA)