Jewar Airport project: Concessionaire to pay penalty of Rs 10 lakh for delay

Having the foundation stone of the ambitious Noida International Airport project laid, the biggest challenge before the builders is to deliver phase one within the stipulated time – September 2024.
Representational Image
Representational Image

LUCKNOW:  Having the foundation stone of the ambitious Noida International Airport project laid, the biggest challenge before the builders is to deliver phase one within the stipulated time – September 2024.
Authorities concerned are back at work to strategise the first phase to make it ready for operations by mid-2024 for a hefty penalty of Rs 10 lakh a day will be imposed on the concessionaire building the airport if it exceeds the deadline.

According to sources, the construction has hit the pace as the Uttar Pradesh government will ensure its delivery in time. However, that will be possible if the ruling party returns to power. As per officials, when the concessionaire, Zurich AG, and the UP government signed the final agreement, it was decided that the company would be liable to pay per day 0.1 per cent of the bank guarantee it had deposited as liquidated damages if the project breached the deadline. 

As Zurich had deposited Rs 100 crore as the bank guarantee, it would have to pay a daily fine of Rs 10 lakh for any delay. Yamuna International Airport Private Limited (YIAPL) is the subsidiary of Zurich AG 
entrusted with the job of setting up the airport.

Clause stated in final agreement

When the final agreement was signed, it was decided that the company would be liable to pay 0.1% of the bank guarantee per day if the project breached the deadline.

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