New Delhi, Jun 14 (IANS): The Cabinet Committee on Economic Affairs (CCEA) on Tuesday approved the proposal for development of Phase I of new greenfield airport at Dholera, Gujarat at an estimated cost of Rs 1,305 crore, to be completed within 48 months.

The CCEA was chaired by Prime Minister Narendra Modi.

Addressing a press conference about cabinet decision, Union Minister Anurag Thakur said, "Union cabinet approves development of phase I of new greenfield airport at Dholera. The Dholera International Airport Company Ltd will construct it and 1,501 hectares of land made available for this."

"Initial passenger traffic is estimated to be three lakh passengers per annum, expected to grow to 23 lakh over a period of 20 years. The annual cargo traffic is also estimated from the year 2025-26 at 20,000 tonne, which would increase to 2.73 lakh tonne over a period of 20 years," Thakur said.

The project is being implemented by Dholera International Airport Company Limited (DIACL), which is a Joint Venture Company comprising Airports Authority of India (AAI), Government of Gujarat (GoG) and National Industrial Corridor Development and Implementation Trust (NICDIT) holding equity in the ratio of 51:33:16.

Dholera Airport is to get Passenger and Cargo traffic from Dholera Special Investment Region (DSIR) and is expected to become a major cargo hub to serve the industrial region. This Airport will also cater to the nearby region and serve as a second airport to Ahmedabad.

The New Greenfield Airport at Dholera is situated at an aerial distance of 80 kilometres from Ahmedabad Airport. The Airport is planned for operationalisation from the year 2025-26.