HDFC Bank has entered into an agreement to provide a funding of Rs 500 crore for the upcoming Asia’s largest airport, Jewar airport in Greater Noida.
The funds issued by the India’s leading private bank will be utilized for land acquisition and infrastructural development for the proposed airport in Greater Noida. The loan has a five year tenure period and the funding amount could be increased later. It will be provided at an interest cost of Marginal cost of funds based on lending rate (MCLR) plus 1 per cent.
The Yamuna Expressway Authority is developing the 5,000-acre, Jewar airport in the Gautam Budh Nagar District of Western Uttar Pradesh. It has also secured financial assistance with more than Rs 4,500 crore which includes funding from Housing & Urban Development Corp. (HUDCO).
The Jewar airport is estimated to cost more than Rs 29,500 crore and the authority is also looking forward to raise additional funds through issuing infrastructure bonds soon. The construction work is expected to start in 2021, while the commencement of operations is scheduled in the beginning of 2024.