LG Approves Setting up of Special Economic Zone at IGI Airport

Delhi Lieutenant Governor VK Saxena approved the creation of a five-acre Special Economic Zone (SEZ) and Free Trade Zone (FTZ) at the Indira Gandhi International (IGI) Airport.

New Delhi: Delhi Lieutenant Governor VK Saxena on Friday gave his nod for the setting up of a Special Economic Zone (SEZ) and Free Trade Zone (FTZ) at the Indira Gandhi International (IGI) Airport in five acres. This step will give a major economic boost to the national capital.

The LG approved the proposal taking note of the strategic importance of developing an FTZ and SEZ at the airport hub. The IGI Airport has been identified by the Ministry of Civil Aviation as a Pilot Air Cargo Hub, after ensuring that the Delhi Development Authority gave a go-ahead for the same as per provisions of MPD-2021, the LG office said in a communique.

"Related with cargo infrastructure and other allied activities, this SEZ and FTZ once operationalised will give a massive fillip to the logistics sector and catalyse the economic growth apart from spinoffs for generating employment," the LG office said.

The SEZ would create economic activities through exports, warehousing, trading and provisions for related services at the airport complex. It will also liberalise and reduce procedural complexities in terms of applications, licensing, clearances and other regulations and reduce red tapism, apart from providing tax benefits to entrepreneurs, it said.

The Ministry of Civil Aviation has identified Delhi as a Pilot Air Cargo Hub, which requires Tier 1, 2 and 3 level infrastructure while DIAL already has developed Tier 1 and 2 infrastructure by way of developing two cargo terminals and logistics centres at the airport, it will achieve Tier 3 once an SEZ/FTZ comes up at the airport complex, the LG office said.

"DIAL proposed the setting up of two Multi Product SEZs at the IGI Airport over an area of 2.02 hectares each (five acres) and requested for the Delhi government’s recommendation under SEZ Rules, 2006. Thereafter, the Industries Department, GNCTD sought clearance of DDA in the matter," the LG office communique said.

Since the development of Delhi as per the Master Plan of Delhi comes under the purview of DDA, the Industries Department vide its letter dated December 7, 2023, requested the DDA to provide their input on whether the development of such an infrastructure at the Delhi Airport is permitted as per the Master Plan 2021, it said.

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