SINDHUDURG AEROSPACE

Concept study

Version 2 · Chipi, Sindhudurg · 99 year lease

THE FLIGHT ACADEMYAircraft are on order. The people to fly and fix them are the constraint, so build the campus that trains them.

LandAll 200 acres

CorePilots, engineers, drones

Developer capexRs 240 to 380 cr

People on siteAbout 1,800

SINDHUDURG AEROSPACE

The gap

Exhibit 01 / The real shortage

Aircraft are on order. The pilots and engineers to run them are not.

20,000pilots

Needed in India over
the next decade

40ATRs

On firm order by Fly91
alone, 2027 to 2032

24x7IFR

Night flying now possible
at Chipi

GST on domestic
MRO services

Every new turboprop needs around a dozen type rated pilots and a team of licensed engineers. Training capacity, not aircraft, limits regional aviation growth.

Implication

A campus that trains pilots, engineers and drone operators together sells the scarcest thing in Indian aviation.

Photo: Trinidade, CC BY-SA 4.0, Wikimedia Commons

SINDHUDURG AEROSPACE

The airport

Exhibit 02 / The asset next door

A 24 hour, all weather runway with one airline on it is waiting for a second job.

Sindhudurg Airport at Chipi-Parule opened in October 2021, built by IRB Infrastructure on a 95 year concession across 271 hectares. In January 2026 DGCA upgraded its licence from visual to all weather operations.

2,500m

Runway, planned to extend
by up to 1,000 m

24x7IFR

All weather licence
from January 2026

6stands

Aircraft parking,
doubled from 3

1airline

Fly91, the only
carrier as of July 2026

Implication

Night and instrument operations let a flight school fly after dark and an MRO accept aircraft round the clock. That lifts utilisation on every asset in Zone A.

SINDHUDURG AEROSPACE

The concept

Exhibit 03 / The idea in one line

One campus from school leaver to licensed pilot, engineer or drone operator.

Four schools share one runway and one residential campus, with a teaching MRO for live aircraft.

Flying training organisationOperator built, with night flying under 24x7 IFR

Type rating centreAn ATR full flight simulator, run by a simulator partner

AME collegeDGCA approved maintenance engineering course

Teaching MROTwo bays, commercial and instructional

Drone pilot schoolAn RPTO with its own range

Cadet campusDeveloper built housing, let to the academy

Implication

Here the developer builds one asset itself: housing. The academy is a captive tenant, so the occupancy risk is low.

SINDHUDURG AEROSPACE

Zoning

Exhibit 04 / Avoiding friction

Noise falls away with distance from the runway, so the zones do too.

Zone A, airside anchorMRO, flight school apron and drone flight test, on the airport boundary with a taxiway link to the 2,500 m runway

Zone B, the mid noise bufferDrone labs, aerospace production and space components between the hangars and the public zones

Zone C, the revenue generatorBusiness hotels, conference, aviation themed cafes and retail on the main access road

Zone D, the quiet quarterApartments, technician and pilot housing and parks, furthest from the runway behind a wide green belt

Implication

A hotel or home next to an engine run up bay is a lawsuit, not a neighbour. Separation is designed in, not negotiated later.

SINDHUDURG AEROSPACE

Allocation

Exhibit 05 / Use of the 200 acres

A campus plan: the largest single use after the airside is where students live.

Zone A, airside60 ac

Zone B, tech and production30 ac

Zone C, hospitality and commercial25 ac

Zone D, residential and amenities50 ac

Green buffers and utilities35 ac

Acreage indicative, fixed only once title, taxiway access, CRZ mapping and aerodrome height limits are confirmed.

Implication

Housing is income, not overhead, on a residential campus. The academy fills it from the first intake.

SINDHUDURG AEROSPACE

Campus life

Exhibit 06 / Zone C and D

Parents choose a campus, not a runway.

Families paying for a pilot licence are choosing where their child will live for two years. The campus has to look like a place they would pick.

Cadet hostelsSingle and twin rooms, study halls, mess

Faculty housingFamily apartments for instructors

Sport and wellnessPitch, pool, gym, track

Hotel and conferenceFor airline recruiters and visiting families

HealthClinic and aviation medical examiner

TransportShuttle to Malvan, Kudal and the railway

Implication

Residential quality is a pricing lever. It justifies premium fees and fills the first intake.

SINDHUDURG AEROSPACE

The lease

Exhibit 07 / 99 year leasehold

A 99 year lease is bankable only if it says six things.

Lenders read the head lease before the business plan. Its terms decide the capital structure.

Right to sub leasePlots let to operators on 30 to 60 year sub leases

Right to mortgageNo mortgageable leasehold, no construction debt

Assignment and change of controlInvestors enter and exit the SPV without a lessor veto

Conditions precedentTitle, 63-1A or NA, taxiway and CRZ cleared before rent

Rent structureLow rent through approvals, escalating once plots earn

Stamp duty and registrationLong leases pay near conveyance duty; townships get 50% off

Implication

Start with an agreement to lease, not the lease itself. Pay an option fee, clear the conditions, then sign the 99 years.

SINDHUDURG AEROSPACE

Legal framework

Exhibit 08 / Legal framework and hidden costs

Four regulatory boundaries sit under the land before a single plan is drawn.

Tenancy law

Section 63 and 63-1A

Under the Maharashtra Tenancy and Agricultural Lands Act, agricultural land cannot pass to a non agriculturist without permission. Section 63-1A permits it for bona fide industrial use and integrated townships.

Secure 63-1A permission or NA conversion as a condition of the lease. A 2026 amendment realigned the conversion premium with the Land Revenue Code, so budget for it.

Land agency

MIDC nodal leasing

Large parcels near airports are often held or managed by MIDC, which leases on 95 to 99 year terms.

Confirm who holds title. If MIDC, its lease terms and allotment process apply instead of a private lease.

Coast

CRZ Notification 2019

A no development zone of 50 m or the creek width applies along tidal creeks, and 200 m from the sea in rural CRZ-III areas.

Map the parcel against the approved Coastal Zone Management Plan before layout. Keep creek edges green.

Planning

Integrated Township Project

Mixed industrial and residential use does not fit standard zoning. UDCPR 2020 Chapter 14, formerly the Special Township Policy, allows it with single window approval.

Confirm with Town Planning that aviation industry sits within the permitted mix, or split into a township and an industrial layout.

A planning summary drawn from public sources, not legal advice. Confirm every point with Maharashtra land and planning counsel.

Implication

None of these is a reason not to proceed. Each is a reason to make the lease conditional until it is cleared.

SINDHUDURG AEROSPACE

Approvals

Exhibit 09 / Regulatory and licensing framework

Seven authorities, one integrated compliance timeline.

Component	Authority	Key approvals
Aircraft MRO	DGCA, IRB, BCAS	CAR-145 approved maintenance organisation; airside access agreement with IRB; airside security clearance
Flying training	DGCA, AAI and ATC	FTO approval; training airspace and circuit slots agreed with ATC; simulator qualification
Drone labs and production	DGCA, MoCA, QCI	Remote Pilot Training Organisation authorisation; type certificate under the Drone Rules 2021 scheme; yellow zone test permission
Space tech labs	IN-SPACe, ISRO	Authorisation for any satellite operation or ground station; standard industrial approvals for component manufacturing
Hotels and housing	Town Planning, MahaRERA	UDCPR 2020 compliance; 5% amenity space on layouts of 20,000 sq m or more; MahaRERA registration for residential sale
Land and height	Collector, AAI	Section 63-1A permission or NA conversion; lease registration; AAI height clearance near the runway
Environment	MCZMA, SEIAA	CRZ clearance where applicable; environmental clearance for buildings above 20,000 sq m built up

Implication

Run the approvals in parallel, not in sequence. The taxiway agreement and land title gate everything else, so they start on day one.

SINDHUDURG AEROSPACE

Business model

Exhibit 10 / Master developer, serviced land

Build the ground, not the hangars. Operators bring their own buildings.

The developer builds

Serviced plots

Clear title, master zoning approval, grading, internal roads, an 11 MVA power grid, water, drainage, security and the taxiway link.

Capital into civil infrastructure only
No specialised equipment risk

Operators build

Their own facilities

MRO hangars, simulators, drone factories, space labs and hotels are built and equipped by the airlines, academies and brands that run them.

Specialised capex off the developer’s balance sheet

The developer earns

Four income lines

Plot premiums on sub lease, annual ground rent, common infrastructure charges, and a share of hospitality and residential development.

Early cash from Zone C and D
Long income from Zone A and B

Implication

A two year Phase 1 cannot deliver hangars and labs as well as land. Serviced land is what a master developer can deliver in 24 months and finance.

SINDHUDURG AEROSPACE

Developer capex

Exhibit 11 / What the developer funds

The developer’s cheque covers civil infrastructure, nothing more.

Element	Basis	Rs cr
Approvals, design and conversion	Title, surveys, ITP filing, CRZ mapping, NA or 63-1A premium, registration	18 to 38
Grading, roads and drainage	About 120 acres of Phase 1 serviced land	45 to 70
Power and water	11 MVA substation, distribution, water source, sewage treatment	28 to 48
Taxiway link and airside apron	Developer share, subject to the IRB agreement	30 to 50
Security, fencing, green buffers	Airside grade fencing, landscape belts	8 to 14
Cadet and staff housing	About 900 beds, developer built and let to the academy	90 to 130
Contingency	About 10%	20 to 30
Version 2 developer total	Months 0 to 30	240 to 380

IndicativeOrder of magnitude from Indian industrial park and township benchmarks. Excludes lease rent or premium, which depends on terms with the lessor. Replace with a quantity surveyed estimate before any commitment.

Implication

Keeping hangars, simulators and labs with the operators turns a Rs 1,000 crore ecosystem into a developer cheque a fraction of that size.

SINDHUDURG AEROSPACE

Capital structure

Exhibit 12 / Equity to debt

Expect 40:60 to 50:50 equity to debt, with equity alone for the first nine months.

Equity, 40 to 50%Promoter, PE, strategic JV

Rs 96 to 190 cr

Debt, 50 to 60%Construction finance, IDFs, PSU banks

Rs 120 to 228 cr

Months 0 to 9Title, master plan, approvals

100% equity

Ranges applied to the Phase 1 developer capex. Lenders draw down only once the project is shovel ready.

Gestation lagServiced plot income does not start until month 18 to 24

Leasehold collateralBanks want a larger equity cushion on leasehold than on freehold

Phased de-riskingEquity carries the approval risk; debt funds grading, roads and power once cleared

Implication

Higher leverage is not available early and would not be wise if it were. The first nine months are the risk equity is paid to take.

SINDHUDURG AEROSPACE

Phase 1 plan

Exhibit 13 / 24 month rollout, two parallel tracks

Airside infrastructure and commercial validation run side by side for 24 months.

Track

Months 1 to 6

Months 7 to 12

Months 13 to 18

Months 19 to 24

MilestoneWhere the project stands

Title, JV and approvals filing

Engineering and clearances

Heavy civil works

Handover

AirsideAerospace anchor

IRB access agreement signed as a condition of the lease

Taxiway engineering layout; CRZ and environmental clearances

Grading, 11 MVA power grid, water and drainage

Phase 1 serviced plots handed to MRO and FTO operators

CommercialLifestyle validation

Hotel operator and anchor tenant letters of intent

Hospitality plot design; MahaRERA for any residential sale

Hospitality land preparation; show plots for operators

Hotel operator starts construction on its plot

CapitalMoney in

Promoter seed equity only

PE or strategic JV closes; lender appraisal

Debt drawn against clearances

First plot premiums and ground rent

Implication

Commercial plots validate demand and bring early cash while the slower airside approvals run. Neither track waits for the other.

SINDHUDURG AEROSPACE

Risk matrix

Exhibit 14 / Critical Phase 1 risks

Seven risks to close in the first 24 months, the first one above all.

Risk	Impact	Mitigation
Taxiway access agreement	Without a tie in to the runway, Zone A loses most of its value	Binding long term access agreement with IRB in the first 6 months, written in as a condition of the lease
Land title and Section 63	Lease invalid or delayed if agricultural land is not cleared	Title search; 63-1A permission or NA conversion as a condition precedent
CRZ and environment	Delay or halt on land near creeks or the sea	Map against the CZMP; keep creek margins green; file early
Township approval	Industrial and residential mix fails standard zoning	Integrated Township Project under UDCPR Chapter 14, or split approvals
Runway length	No wide body aircraft at 2,500 m	Target turboprops and narrow bodies; wide body only as Phase 2 with the runway extension
Anchor demand	Serviced plots sit empty	Letters of intent before capex; service land in step with signed demand
Leasehold financing	Lenders cautious on leasehold land	Mortgageable head lease; 40 to 50% equity; pre leases as security

Implication

The taxiway agreement is the single largest value driver on the site. Nothing irreversible is spent until it is signed.

SINDHUDURG AEROSPACE

How to start

Exhibit 15 / The first 120 days

Sign the training operators first. They bring the students, and the students fill the housing.

Sign an agreement to lease99 years, conditional on title, 63-1A or NA, taxiway access and CRZ, against an option fee

Form the master developer SPVOne vehicle for the land, approvals and serviced plots

Open the IRB conversationA memorandum on airside access within 90 days

Collect three anchor lettersAn MRO operator, a flight school and a hotel brand

Commit seed equityAround Rs 10 to 25 cr for due diligence, master plan and filings

Raise with tenants in handStrategic JV or PE at shovel ready, then debt

Next step

The order matters. Capital raised before the taxiway and the tenants are secured is raised at the worst price it will ever get.