Airports Authority of India (AAI) has signed a Memorandum of Understanding (MoU) with the Government of Himachal Pradesh for the development of a greenfield airport at Nagchala near Mandi in Himachal Pradesh, northern India.
Initially, the airport will be suitable for operation of aircraft up to ATR 72. The development of the greenfield airport with unidirectional runway will be implemented through a joint-venture (JV) company wherein AAI will hold 51% equity and the remaining 49% equity will be held by the government or its designated agency.
The JV will undertake the functions of designing, developing, constructing and completion of the airport, including finance, for commercial civil aviation operation, as well as undertaking operation, maintenance and management of the airport in accordance with the terms and conditions of the MoU.
AAI will incorporate a JV company under the Companies Act 2013 and will also execute a joint venture agreement and shareholders agreement with GoHP and a communication, navigation, surveillance and air traffic management (CNS / ATM) agreement with the JV.
