Delhi Lieutenant Governor V K Saxena on Friday gave his nod for the setting up a Special Economic Zone (SEZ) and Free Trade Zone (FTZ) at the Indira Gandhi International Airport over an area of five acres.

The move will give a major economic boost to the capital.

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“Related to the Cargo Infrastructure and other allied activities, this SEZ/FTZ once operationalized will give a massive fillip to the logistics sector and catalyse the economic growth apart from spinoffs for generating employment,” an official statement from the LG Office said.

Saxena approved the proposal taking note of the strategic importance of developing an FTZ/SEZ at the Airport hub, after ensuring that DDA gives a go-ahead for the same as per provisions of MPD-2021, the statement said.

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

The Ministry of Civil Aviation, Government of India 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 & 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 statement said.

“DIAL proposed the setting up of two multi-product SEZs at the IGI Airport over an area of 2.02 hectares each (5 acres) and requested Delhi Government’s recommendation under SEZ Rules, 2006. Thereafter, the Industries Department, GNCTD sought clearance of DDA in the matter,” it 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 DDA to provide their input on whether the development of such infrastructure at the Delhi Airport is permitted as per the Master Plan 2021,” the statement said.

DDA vide its letter dated January 3, 2024, after taking into consideration, traffic impact assessment and development control norms for transportation, laid out in MPD-2021, conveyed its consent subject to regulations in this regard, laid down by the Airport Authority of India (AAI), it said.

“After the LG’s approval, the in-principle consent/agreement of GNCTD along with observations of DDA, will be conveyed to the Ministry of Commerce, GoI, ” the statement said.