Upcoming Jewar airport project may hit IGI's business

The upcoming Jewar airport is likely to hit business of the GMR group that runs the Delhi's Indira Gandhi International (IGI) Airport.

Almost a month after the Yamuna Expressway Industrial Development Authority set up an eight-member committee to take up the task of acquiring land for building Jewar International Airport, the GMR group that runs Delhi airport, has said the upcoming project will be a challenge and impact its business.

The disclosure was made by the GMR in its annual report 2016-2017. DNA has accessed the report and related documents. In the report, submitted in the first week of October, the group mentioned, "With several infrastructure players in the country diversifying into multiple businesses, competition in key sectors of transportation and retail has increased. In addition, smaller players have made foray into industries that were considered the turf of the large houses."

It further stated that the group is also affected by the increasing competition in nearly every business stream it is involved in, thus exposing itself to thinner margins.

"The proposed development of new airports in the National Capital Region (NCR) like those in Jewar (UP) and Bhiwadi (Rajasthan) may impact the business of Delhi airport in the long term. In the infrastructure area, competition is more likely to impact at the initial stage itself," the report read.