The Government of India’s cabinet committee on economic affairs (CCEA) has cleared the proposal to develop Phase I of the new greenfield airport in the state of Gujarat.

This airport will be built in Dholera, Ahmedabad, at an estimated cost of Rs13.05bn ($16.7m). Work on the project is expected to be completed within four years.

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Located at an aerial distance of 80km from Ahmedabad airport, the new greenfield airport is expected to become operational in either 2025 or 2026.

Dholera International Airport Company Limited (DIACL), a joint venture between the Airports Authority of India (AAI), Government of Gujarat (GoG), and National Industrial Corridor Development and Implementation Trust (NICDIT), will be responsible for the project’s execution.

With a 51% stake, AAI will be the majority stakeholder in the JV. GoG and NICDIT hold 33% and 16% interests, respectively.

Upon commencing services, the annual passenger volume at Dholera Airport is estimated to be 0.3 million. This is projected to reach 2.3 million over a period of two decades.

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Annual cargo traffic is anticipated to grow from 20,000t to 273,000t during the same period.

Expected to serve as a key cargo hub, the airport will receive cargo traffic from Dholera Special Investment Region (DSIR).

In another development, the Competition Commission of India (CCI) has given the go-ahead to the purchase of the entire stake in low-cost carrier AirAsia India by Air India, which was recently acquired by Tata Sons Private Limited (TSPL).

The proposal to acquire the remaining interest in the budget airline was announced in April.