Maharashtra Cabinet Approves Major Funding for Purandar Airport Land Acquisition
The Maharashtra state government has taken a significant step forward in the development of the proposed Purandar airport. On Tuesday, the state cabinet granted its approval, in principle, for raising a substantial loan of Rs 6,000 crore specifically earmarked for the acquisition of land required for this ambitious greenfield airport project located near Pune.
Funding Strategy and SPV Structure
Principal Secretary for Industries, P Anbalagan, confirmed the cabinet's decision. He detailed that the funding will be managed through a Special Purpose Vehicle (SPV) that has already been established to execute the airport project. This SPV features a clear shareholding structure: CIDCO holds a majority stake of 51%, followed by MIDC and PMRDA each with 15%, and MADC with a 19% share.
"It was decided to raise around Rs 6,000 crore for the greenfield airport's land acquisition," stated Anbalagan. "While Hudco has offered funding of about Rs 3,000 crore, the government is actively exploring other funding options. We will invite commercial quotes and opt for the most beneficial financial arrangement."
The cabinet also made a crucial decision regarding financial responsibility, ruling that the repayment of the loan will be the obligation of the SPV partners. This repayment will be proportional to their respective shareholdings in the venture, ensuring a structured and accountable financial framework.
Transformative Impact on Regional Development
Pune MP and Union Minister of State for Civil Aviation, Murlidhar Mohol, emphasized the transformative potential of the Purandar airport. He highlighted that this greenfield project is poised to significantly accelerate development across Pune and the broader western Maharashtra region.
"Enhanced air connectivity will be a game-changer for industry, business, the IT sector, tourism, and agricultural exports," Mohol asserted. He positioned the Purandar airport as a major alternative aviation hub for the region, following the Navi Mumbai international airport. This development is expected to substantially boost both passenger- and cargo-handling capacities in western Maharashtra.
Boosting International Links and Economic Opportunities
Minister Mohol further elaborated on the strategic advantages, noting that the project will strengthen international connectivity. It holds the potential to establish direct air links to key global routes in the Middle East, Europe, and Southeast Asia. "This will open new avenues for exports, foreign investment, and global business opportunities," he added, underscoring the project's role in integrating the region into the global economy.
The benefits are projected to extend across multiple sectors. The airport is expected to enhance logistics and warehousing capabilities, support MSMEs (Micro, Small, and Medium Enterprises), and empower the agricultural sector by enabling faster movement of goods and providing farmers with more direct access to markets. Additionally, the project is anticipated to generate substantial employment, strengthen regional infrastructure, and attract significant new investments.
Mohol concluded by assuring that the Central Government and the Maharashtra State Government will work in close coordination to ensure the timely and successful completion of the Purandar airport project, marking a new chapter in the region's infrastructure and economic landscape.
