Jewar airport is useful but market economy needs a bigger boost

Inauguration of the Noida International Airport at Jewar in Uttar Pradesh is a piece of good news at a time when most happenings, from the protracted conflict in Iran to the fear of shortages in India, are unpleasant. The second international airport in the Delhi-National Capital Region, Jewar has a 3,900-metre runway that is capable of handling low-visibility operations; it can also function during winter fog disruptions. Built at an estimated cost of around Rs 11,200 crore, it has a terminal for rapid passenger processing. The Directorate General of Civil Aviation (DDCA) granted the airport its aerodrome licence this month along with approval for “all-weather operations.” This clearance is given when the Instrument Landing System (ILS), navigation aids, runway lighting, and air traffic systems are in place. Inaugurating the airport, Prime Minister Narendra Modi rightly pointed out that airports are not merely amenities but catalysts for progress. The Noida airport will benefit a vast region encompassing Agra, Mathura, Aligarh, Ghaziabad, Meerut, Etawah, Bulandshahr and Faridabad. With 160 airports, air connectivity in India is now reaching not just metropolitan cities but also smaller towns, he said. Speaking on the occasion, Civil Aviation Minister Ram Mohan Naidu said the project is being developed as an “aerotropolis”, which will integrate cargo infrastructure to help locally manufactured goods access domestic and global markets.

If the operations are carried out as planned, industrial growth in the country’s largest state will certainly get a leg up. Plus, the proposed Maintenance, Repair and Overhaul (MRO) facility, which will be spread over 40 acres, will generate jobs. Uttar Pradesh Chief Minister Yogi Adityanath, who faces Assembly polls next year, is also bullish about Jewar. “This airport will boost investment, trade and industrial development in north India, while also generating large-scale employment.” It is heartening to notice that top leaders at both the Centre and in states are keen on promoting the aviation sector, but this boost must be comprehensive, reflecting in all aspects of the sector—from infrastructure building to operations. That, alas, is not happening. “The current government has made air travel accessible for the common Indian,” the Prime Minister said. He spoke about the expansion of the Regional Connectivity Scheme (RCS) – UDAN (‘Ude Desh ka Aam Nagrik’), which was launched in October 2016. The government has already approved a modified version of the scheme with a total outlay of Rs 28,840 crore. But the problem is that the scheme has been a failure, which is not surprising because it is essentially anti-liberalisation.

The government must realise that market realities cannot be ignored in its bid to promote anything, whether a sector or people. The fundamental issue with UDAN lies in its structural design. By relying heavily on subsidies and fare caps, the scheme distorts pricing mechanisms that are essential for the sustainability of the aviation sector—indeed, the entire economy. Many routes under UDAN have struggled with low passenger demand, leading to frequent cancellations or withdrawals by carriers. Airlines, operating on thin margins even under normal conditions, find it difficult to maintain profitability on routes where demand does not justify capacity. Therefore, the success of projects like the Jewar airport will ultimately depend not just on their physical infrastructure but on the broader ecosystem in which they operate. The market economy must replace dirigisme, which endeavours to foster industrial growth and meet socioeconomic goals.

ABOUT THE AUTHOR

The Hans India