The Noida International Airport (NIA) in Jewar, originally slated to begin operations by the end of September 2024, now faces a new target date of April 2025. This delay may result in a ₹21 crore penalty imposed by the Uttar Pradesh government, according to officials familiar with the situation.

Under the terms of the agreement with the Uttar Pradesh government, the NIA was expected to commence flight operations by September 30, 2024. The contract allows for a 91-day grace period for the operator to fully initiate services. However, any delays beyond this period would trigger penalties. The four-month delay could cost the operator ₹10 lakh per day in fines.

NIA, a subsidiary of Zurich Airport International AG, is progressing with construction. The carpeting of the airport's runway is complete, with runway lights expected to be installed soon. Work on the terminal building is ongoing at different stages.

Despite the potential financial repercussions, NIA officials are reportedly in discussions with the state government to reduce the penalty, though sources suggest that the chances of waiving the fines are minimal. "While dialogue continues, any relief in penalties is unlikely," said an official close to the matter.

An NIA spokesperson emphasized their collaboration with the Uttar Pradesh government but did not comment on the penalties. "Noida International Airport is a testament to the success of public-private partnerships. From the start, the Uttar Pradesh government has been a strong supporter of this project. Together, we are committed to delivering a world-class airport for Uttar Pradesh and Delhi NCR," the spokesperson stated.

Meanwhile, Noida International Airport Ltd (NIAL), the state government's special purpose vehicle for the project, issued a notice to the operator, Yamuna International Airport Private Limited (YIAPL), for extending the timeline without prior consultation.

The delay is attributed to various factors, including setbacks in awarding the engineering procurement and construction (EPC) contract, which was given to Tata Projects in June 2022.

In its first phase, the airport will feature one terminal building and a single runway, capable of handling 12 million passengers annually. Future phases aim to expand this capacity to 70 million passengers per year. The air traffic control (ATC) building is nearing completion, and part of the facility has already been handed over to Airports Authority of India (AAI) vendors for parallel work.

YIAPL plans to apply for an aerodrome license in December, following the completion of critical validation flights in the coming weeks.