Published On:
February 13, 2026
Updated On:
February 13, 2026
The Uttar Pradesh government has allocated a massive ₹2,111 crore to the civil aviation sector in its FY 2026-27 budget, featuring a strategic ₹750 crore injection into the Noida International Airport at Jewar. This funding will drive the acquisition of land for the airport's expansion from two to five runways and support the creation of a cutting-edge maintenance, repair, and overhaul (MRO) hub, fundamentally transforming the region's economic and infrastructure landscape.
The infrastructure narrative of Uttar Pradesh is undergoing a historic rewrite, shifting from foundational road networks to dominating the skies. In a definitive move that underscores its ambition to become India’s premier logistics and transit powerhouse, the state government recently unveiled its budget for the financial year 2026-27. Among the many sector allocations, the spotlight shone brightest on civil aviation, which received a staggering proposed outlay of ₹2,111 crore.
This financial commitment is not merely about upgrading existing facilities; it is a calculated, strategic investment designed to catapult the state onto the global aviation map. At the very heart of this financial blueprint lies the Noida International Airport (NIA) in Jewar, a greenfield project that is rapidly evolving from a regional transit point into a colossal, multi-runway international aviation hub. For real estate investors, logistics companies, and the everyday commuter in the National Capital Region, this budget allocation signals the imminent arrival of a new economic era.
While the broader civil aviation budget covers the entire state, the Noida International Airport emerged as the crown jewel, securing a dedicated capital outlay of ₹750 crore. To understand the impact of this funding, it is crucial to break down how this capital will be deployed on the ground.
The lion's share of this specific allocation—amounting to ₹700 crore—has been strictly earmarked for land acquisition. As infrastructure projects of this magnitude expand, securing contiguous land parcels becomes the most complex and expensive hurdle. This hefty financial provision ensures that the administrative machinery has the necessary capital to compensate landowners fairly and swiftly, preventing the bureaucratic paralysis that often plagues massive public works. The remaining ₹50 crore has been set aside to facilitate ongoing and upcoming construction-related activities.
This capital injection arrives at a critical juncture. The airport is being developed under a public-private partnership (PPP) model by Yamuna International Airport Private Limited, a subsidiary of the globally renowned Zurich Airport International AG. Consistent state funding for land acquisition ensures that the private developer can focus entirely on executing world-class construction and operationalizing the facility without facing bottlenecks regarding land handover.
Perhaps the most astonishing revelation to accompany the budget details was the massive expansion of the project's long-term scope. Initially, the master plan for the Jewar facility was designed around a twin-runway system, which was already considered a substantial addition to the region's infrastructure. However, recognizing the explosive, sustained growth in both domestic and international passenger traffic—as well as the booming e-commerce logistics sector—the state government has officially revised the blueprint to accommodate five runways.
This five-runway gambit is a transformative decision. Upon completion, it will place the Noida International Airport in an elite tier of global mega-hubs, rivaling the sheer scale of the world's busiest airports. But the vision extends far beyond merely moving people from one city to another. The state intends to position Jewar as a comprehensive, self-sustaining aviation ecosystem.
A central pillar of this ecosystem is the planned establishment of an aviation innovation and research center, coupled with a massive Maintenance, Repair, and Overhaul (MRO) hub. Currently, a significant portion of the Indian commercial aviation fleet is serviced overseas, draining valuable foreign exchange. By establishing a dedicated MRO hub within the Jewar complex, India can domesticate these highly specialized engineering services. This move aligns perfectly with national industry forecasts, which project massive growth in the domestic MRO market over the next decade.
For a project of this scale, understanding the phased rollout is essential. The development is structured across four distinct phases, and the latest budget ensures the momentum continues seamlessly from one phase to the next.
The first phase, sprawling across 1,334 hectares, is a testament to rapid execution. The primary infrastructure, including the state-of-the-art passenger terminal and the first runway, is mechanically complete. Designed to handle an impressive 1.2 crore (12 million) passengers annually, this initial phase represents a massive immediate upgrade to the NCR's transit capabilities. Currently, the facility is navigating the final administrative clearances and is awaiting its crucial aerodrome license from the Directorate General of Civil Aviation (DGCA). Administrative updates strongly indicate that commercial operations are imminent, with high-level inaugurations expected within the month.
Simultaneously, the groundwork for future expansion is already locked in. The second phase, which required the acquisition of 1,365 hectares, has successfully concluded its land aggregation process, with compensation distributed to the farming communities. This specific tract of land is vital as it will house the foundational infrastructure for the aforementioned MRO facilities and the second runway.
The newly allocated ₹700 crore for land acquisition will primarily fuel the aggressive push into the third and fourth phases. These final phases are ambitious, requiring a combined total of 2,053 hectares spread across 14 villages. The administration is reportedly making smooth progress, offering a compensation rate of ₹4,300 per square meter, which has been largely met with willingness from the local landowners. Once these final phases are fully realized and all five runways are operational, the airport's passenger handling capacity will scale up to a staggering seven crore (70 million) flyers every single year.
The development of the Noida International Airport does not exist in a vacuum; it is strategically positioned to complement—and compete with—the existing Indira Gandhi International Airport (IGI) in New Delhi. IGI has long been the undisputed heavyweight of South Asian aviation, but it is fast approaching its saturation point in terms of physical expansion and airspace congestion.
Jewar offers a pressure release valve for the NCR, but it also brings its own unique competitive advantages to the table. One of the most significant logistical levers the state government has pulled is its tax policy regarding Aviation Turbine Fuel (ATF). The operational costs at Jewar are expected to be highly attractive to domestic and international carriers, largely due to heavily subsidized or drastically lower VAT rates on jet fuel compared to the steep taxes levied in neighboring Delhi. This fiscal strategy, combined with a brand-new, uncongested airspace, makes the Noida airport an incredibly lucrative proposition for airlines looking to establish new base operations or expand their regional networks.
While the mega-airport at Jewar rightfully dominates the headlines, the FY27 budget demonstrates a holistic approach to civil aviation. The government acutely understands that a single international hub is only as strong as the regional network feeding into it. To this end, a hefty ₹1,100 crore has been proposed for the construction, expansion, and strengthening of airstrips across the entirety of Uttar Pradesh.
This massive secondary allocation is heavily focused on land acquisition for smaller, regional airports. This strategy works in tandem with the central government’s Regional Connectivity Scheme (UDAN) and the state's own Civil Aviation Promotion Policy. The goal is the democratization of air travel—ensuring that citizens in Tier-2 and Tier-3 cities have rapid, reliable access to the state capital and the national capital. By upgrading these regional airstrips to handle commercial flights, the state is effectively shrinking travel times across its vast geography, fostering tighter economic integration between its agricultural heartlands and its urban industrial centers.
Furthermore, targeted micro-allocations highlight the state's meticulous planning. For instance, the Ayodhya Airport has been granted an additional ₹7 crore specifically for the construction of critical approach roads and the establishment of a dedicated police outpost for the upcoming second terminal. This targeted funding ensures that religious and cultural tourism corridors remain robust, safe, and easily accessible to the millions of pilgrims visiting the state annually.
The injection of ₹2,111 crore into civil aviation transcends the boundaries of transportation; it is a profound economic catalyst. For Western Uttar Pradesh, the operationalization and continuous expansion of the Jewar airport is triggering a renaissance in urban development and real estate.
The immediate vicinity of the airport, particularly along the Yamuna Expressway, is rapidly transforming into a highly sought-after commercial and residential destination. The promise of a five-runway international airport has attracted massive investments in logistics parks, warehousing, and industrial townships. Corporations recognize that proximity to a major global transit hub dramatically reduces supply chain friction.
Consequently, the real estate market in regions like Greater Noida, the Yamuna Expressway belt, and even extending toward Agra, is witnessing sustained, robust appreciation. The clear financial commitment demonstrated in the FY27 budget acts as a powerful confidence booster for institutional investors. It provides absolute certainty that the government is not backing down from its infrastructural promises, thereby de-risking long-term investments in the region.
Moreover, the employment generation potential of this aviation push is astronomical. Beyond the direct jobs created within the airport terminals and the MRO facilities, the cascading effect on the hospitality, retail, transportation, and construction sectors will create livelihoods for hundreds of thousands of residents. It marks a transition from an agrarian-heavy local economy to a highly specialized, service-and-technology-driven landscape.
The Uttar Pradesh budget for the financial year 2026-27 is a masterclass in infrastructural foresight. By allocating ₹2,111 crore to the civil aviation sector, with a razor-sharp focus on the ₹750 crore expansion of the Noida International Airport, the state is laying the concrete foundation for a multi-decade economic boom.
The transition from a two-runway plan to a five-runway global hub, complete with integrated maintenance and research facilities, signals that Uttar Pradesh is no longer content with playing catch-up. As the first commercial flights prepare to take to the skies from Jewar, the region stands on the precipice of unparalleled connectivity and growth. The financial roadmap has been clearly drawn, the land is being secured, and the infrastructure is rising. For the state of Uttar Pradesh, the sky is no longer the limit; it is the starting point.
