DIAL executives have pointed out that globally, a second airport in such close proximity comes up only when the first one is saturated. Otherwise, a second airport leads to two weak airports as well as huge additional costs in infrastructure development.

Delhi airport is being developed to cater to 100 million passengers a year against a current traffic flow of around 20 million passengers.

The airport is being developed at an investment of Rs 30,000 crore (Rs 300 billion). The traffic and cargo forecast was drawn up for a 150-km catchment area when the bids were placed.

The government owns 26 per cent in DIAL through the Airports Authority of India, with Hyderabad-based GMR holding 50.1 per cent. Fraport and Malaysian Airport hold 10 per cent each and IDFC [Get Quote] 3.9 per cent.

Some civil aviation experts endorse DIAL's view but airline operators argue that the concept of a second airport is a global one that creates competition and offers users better prices and services.

"Otherwise, what you have is private monopoly instead of a government monopoly," G R Gopinath, chairman of Air Deccan, told Business Standard earlier.

Under the airport infrastructure policy of 1997 no new airport should be developed within an aerial distance of 150 km of the existing airport. However, a greenfield project can be permitted where the existing airport is unable to meet traffic requirements.

DIAL executives said that unlike the Mumbai airport modernisation project, for which the construction of the Navi Mumbai greenfield project was disclosed during the bidding, the proposal for an airport in Jewar was never discussed.