Tata Projects will build the national capital region’s new airport at Jewar, after outbidding the Shapoorji Pallonji Group and Larsen & Toubro for the contract. While the deal size has not been disclosed, sources pegged it at over Rs 6,000 crore.
Tata Projects, the infrastructure and construction arm of the Tata group, will construct the terminal, runway, airside infrastructure, roads, utilities, landside facilities and other ancillary buildings at the Noida International Airport.
The company is learnt to have scored higher than the rival bidders under the quality and cost-based selection criteria.
“With the award of this EPC contract, our project enters the next phase, which will witness a rapid increase in the pace of construction activities on site. Together with Tata Projects, we’re working to deliver a passenger terminal, runway, and other airport infrastructure with a capacity of 12 million passengers annually, by 2024,” said Christoph Schnellmann, Chief Executive Officer, Yamuna International Airport Private Limited (YIAPL).
The new airport is expected to be functional by 2024.
With the closure of the EPC contract, the first phase of the airport is on track to be delivered within three years of the commencement of the concession period, YIAPL said.
“Tata Projects will work closely with YIAPL to deliver the airport on time.
We will deploy the latest technologies in its construction, while meeting the highest standards of quality, safety, and sustainability, said Vinayak Pai, CEO and MD-designate at Tata Projects Ltd.
While Tata Projects recently won tenders of many major projects including the new Parliament building, Mumbai Trans-Harbour Link, and Metro rail lines across various cities, it doesn’t have any major airport EPC contract in its kitty.
In 2018, it won the contract for the construction of a new terminal building at Prayagraj airport in Uttar Pradesh and is credited for completing the project in a record 11 months.
In comparison, L&T has multiple ongoing airport projects including the Navi Mumbai airport, expansion of Delhi International Airport and the construction of a new terminal at Bengaluru Airport.
Sources said that the price difference between Tata Projects and the second highest bidder was significant. “Tata Projects are becoming more aggressive in winning projects and quoting aggressively. That’s why multiple marquee projects are being won by them,” said an executive of a construction firm.
According to the contract terms for the Jewar airport, a fine of Rs 10 lakh per day will be levied on the developer of the upcoming Noida International Airport in case of a project delay.