SINDHUDURG AEROSPACE

Concept study

Version 4 · Recommended · Chipi, Sindhudurg

SINDHUDURG AEROSPACE GATEWAYA master developed aero-tech township on a 99 year lease beside a 24 hour runway. Operators build, the developer services the land.

Land200 acres, 99 year lease

ModelServiced land, master developer

Phase 1Rs 140 to 240 cr, 24 months

Equity to debt40:60 to 50:50

SINDHUDURG AEROSPACE

Executive summary

Summary

Serviced land beside a licensed 24 hour runway, let to operators who bring their own capital.

The site200 acres beside Sindhudurg Airport, 2,500 m runway, 24x7 IFR since January 2026

The demandFly91 growing from 6 to over 50 ATRs; India needs 20,000 pilots; 5% MRO tax

The planFour zones: airside 30%, tech 20%, residential 20%, hospitality 15%, buffers 15%

The modelMaster developer services the land; MRO, FTO, drone, space and hotel operators build

The moneyPhase 1 developer capex Rs 140 to 240 cr at 40:60 to 50:50 equity to debt

The gateA binding taxiway access agreement with IRB, secured before anything irreversible

Recommendation

Start conditionally: agreement to lease, IRB memorandum and three anchor letters within 120 days, then raise.

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 anchor

Exhibit 03 / Demand that already exists

The region’s own airline is going from six turboprops to more than fifty.

Signal	Detail	Scale
Fly91 fleet today	Goa based, ATR 72-600, the only airline serving Sindhudurg	6 aircraft
Firm order	40 ATR 72-600, delivery 2027 to 2032, about USD 1 billion	+40
Near term leases	6 to 8 more ATR 72-600 before the order arrives	+6 to 8
India MRO market	USD 4.0 bn in 2025, forecast USD 7.0 bn by 2034	6% CAGR
MRO tax	GST on MRO services and IGST on imported parts both cut to 5%	5%
Pilots India needs	Industry forecast for the next decade	20,000

ATR 72-600 on approach, concept render

Implication

Every ATR needs line checks, heavy checks, propeller and engine shop visits and type rated crew. A base an hour from the operator’s home is the obvious place to buy them.

SINDHUDURG AEROSPACE

Why Chipi

Exhibit 04 / Strategic advantages

Four tailwinds that did not exist when the airport opened.

Operations

24x7 all weather licence

DGCA approved instrument operations with RNP procedures and a backup navaid in January 2026.

Night flying training and round the clock MRO intake become possible.

Tax

5% on MRO services and parts

GST on domestic MRO services and IGST on imported parts both sit at 5%, with full input tax credit.

Repair in India now competes with Singapore and Colombo on price.

Policy

MRO guidelines, 2021 and 2026

Royalty removed and rent free periods for new hangars, applicable at AAI airports.

Chipi is IRB run, so airside terms are commercial. Negotiate the equivalent with IRB.

Market

The Goa spillover

North Goa is an hour away and Sindhudurg is absorbing its tourism and second home demand.

Zone C and D pull demand from Goa, not only from the aerospace tenants.

Implication

The operational upgrade is the one to lead with. It changes the economics of flight training and MRO at this runway specifically.

SINDHUDURG AEROSPACE

The four engines

Exhibit 05 / What the site does

Fly, fix, build, launch: four clusters that trade people and work.

Fly

Flight Academy

Pilots, engineers, operators

Flying training organisation
ATR type rating simulator
Night flying under 24x7 IFR
Drone pilot school

Zone A and B

Fix

Aviation Services

Turboprop and narrow body

ATR and A320 class MRO
Propeller overhaul shop
Engine modules
Component repair

Zone A

Build

Drone Centre

Make it and fly it here

Factory units for makers
Type certification testing
Maritime and farm trials
Supplier park

Zone B

Launch

Space Components

Maharashtra’s first shared facility

Shared satellite test labs
Cleanroom assembly
Component manufacturing
Ground station

Zone B

Implication

The MRO hires the academy’s engineers and the drone makers hire its pilots. The clusters recruit from each other.

SINDHUDURG AEROSPACE

Zoning

Exhibit 06 / 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 07 / Use of the 200 acres

The optimal split: 30% airside, 20% tech, 20% residential, 15% hospitality, 15% buffers.

Zone A, airside60 ac

Zone B, tech and production40 ac

Zone D, residential and amenities40 ac

Zone C, hospitality and commercial30 ac

Green buffers and utilities30 ac

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

Implication

Every zone is sized to run on its own, so a delay in one never stalls the others.

SINDHUDURG AEROSPACE

Business model

Exhibit 08 / 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

The lease

Exhibit 09 / 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 10 / 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 11 / 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

Phase 1 plan

Exhibit 12 / 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

Developer capex

Exhibit 13 / 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
Contingency	About 10%	13 to 20
Phase 1 developer total	Months 0 to 24	142 to 240

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

Full build

Exhibit 14 / Developer capex beyond Phase 1

Around Rs 320 to 520 crore of developer capital unlocks over Rs 1,000 crore of operator investment.

Phase	What the developer delivers	Rs cr
Phase 1, months 0 to 24	Title, approvals, Zone A and C serviced, taxiway link, 11 MVA power	142 to 240
Phase 2, years 2 to 4	Zone B serviced for drone and space tenants, second power feed	60 to 90
Phase 3, years 3 to 6	Zone D serviced; developer or JV residential and amenity build	80 to 120
Shared space and skills facility	Test labs and academy seats, public co-funding assumed	40 to 70
Developer total	About six years	322 to 520

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. Operator investment in hangars, simulators, factories, labs and hotels of around Rs 1,000 to 1,400 cr sits on top, funded by operators.

Implication

The ratio is the pitch: each rupee of developer infrastructure is designed to pull two to three rupees of tenant capital onto the site.

SINDHUDURG AEROSPACE

Capital structure

Exhibit 15 / 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 57 to 120 cr

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

Rs 71 to 144 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

Investment thesis

Exhibit 16 / For institutional capital

Three reasons an infrastructure fund should look at 200 acres in Sindhudurg.

Driver 01

De-risked capex

Operators such as airlines, academies and hotel brands bear the specialised building and equipment cost. Developer capital goes into civil infrastructure only.

Lower capital at risk per acre than a built to suit park.

Driver 02

Regulatory tailwinds

5% GST on MRO services, 5% IGST on parts, and a 24x7 all weather licence at the runway next door.

Domestic MRO is now price competitive with Singapore and Colombo.

Driver 03

Real estate co-valuation

Pilots, technicians and engineers form a captive, well paid population for housing, hotels and retail on the same site.

Occupancy in Zones C and D rests on Zone A’s payroll.

Exit

Stabilised income

Once plots are let, ground rent and lease income form a long dated, stable cash flow.

A natural fit for an InvIT, REIT or long hold infrastructure fund.

Implication

The pitch is not aerospace risk. It is serviced land next to a licensed 24 hour runway, with tenants who bring their own capital.

SINDHUDURG AEROSPACE

Partners

Exhibit 17 / Getting partners to invest

Six kinds of partner, each wanting something different from the same site.

Partner	What they want	What you offer	When
Promoter	Control and land upside	Seed equity for approvals	Months 0 to 9
Strategic JV partner	A serviced land pipeline	Co-development and execution depth	Month 6 onward
PE or infrastructure fund	IRR and a clear exit	Equity at shovel ready, exit to InvIT or REIT	Month 9 to 12
Anchor operators	Runway access and low early rent	Pre leases and deposits on Zone A and C plots	Month 3 onward
Lenders	Equity cushion, mortgageable lease	Construction debt for grading, roads and power	Month 12 onward
State and agencies	Jobs, investment, a flagship	Single window approvals, infrastructure support, incentives	From day one

Implication

Investors follow tenants. Three signed letters of intent turn a land deal into an infrastructure deal.

SINDHUDURG AEROSPACE

Risk matrix

Exhibit 18 / 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

Structure

Exhibit 19 / Government and private participation

Three vehicles, because serviced land, a hangar and a shared test lab are funded differently.

Vehicle 01

Master Developer SPV

Holds the 99 year lease, secures approvals and the taxiway link, services plots and sub leases them.

Promoter and PE equity
Strategic JV partner
Construction debt, IDFs, PSU banks

Vehicle 02

Operating tenants

MRO, flight school, drone makers, space component firms and hotel brands build and run their own facilities.

Operator balance sheets
Equipment finance

Vehicle 03

Shared facility

Space test labs and skills seats run as common infrastructure, open to every tenant.

Department of Space and IN-SPACe
State skills mission
OEM and CSR partners

Implication

The state helps with approvals and shared facilities, private operators carry the businesses, and the SPV carries only the land.

SINDHUDURG AEROSPACE

Four versions

Exhibit 20 / Why Version 4

Each version keeps the one before it and adds what the evidence supports.

	V1 Hangar Line	V2 Flight Academy	V3 Aerospace Park	V4 Gateway
Land serviced	120 acres, 80 held	200 acres	200 acres, 3 phases	200 acres, 3 phases
Anchors	MRO, flight school, hotel	Training campus	All four clusters	All four plus shared facility
Developer capex	Rs 140 to 240 cr	Rs 240 to 380 cr	Rs 280 to 450 cr	Rs 320 to 520 cr
Developer builds	Infrastructure only	Plus cadet housing	Plus Zone D housing	Plus shared facility, co-funded
First income	Months 19 to 24	Months 19 to 24	Months 19 to 24	Months 19 to 24
Main risk	Taxiway access	Enrolment	Many tenants at once	Public co-funding
Best for	Proving the site	Steady captive income	The full brief	Institutional capital

Recommendation

Version 4’s Phase 1 is Version 1. Commit to the first 24 months and let signed tenants unlock each next phase.

SINDHUDURG AEROSPACE

How to start

Exhibit 21 / The first 120 days

The best way to start: lock the land conditionally, then sign tenants before raising.

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.