Maharashtra Government Sanctions Major Loan for Purandar Airport Land Acquisition
The Maharashtra government has taken a significant step forward in the development of the proposed Purandar international airport by approving a substantial loan of Rs 6,000 crore specifically for land acquisition. This crucial financial clearance was granted on Friday, accompanied by stringent financial riders to ensure fiscal discipline and accountability throughout the process.
Strict Financial Conditions and Accountability Measures
In a government resolution (GR) issued by Principal Secretary (Industries) P. Anbalagan, the industries department has authorized the Maharashtra Industrial Development Corporation (MIDC) to raise the funds from the Housing and Urban Development Corporation (HUDCO) or other financial institutions at competitive interest rates. The approval comes with a state guarantee, but mandates strict adherence to fiscal responsibility and budget management (FRBM) norms.
The loan must be utilized exclusively for land acquisition and related works within a clearly defined timeframe. The GR explicitly requires MIDC to submit regular monthly or half-yearly reports to the state government detailing repayment schedules and overall financial status. "We are currently in negotiations with financial institutions and expect to complete the process within 10–15 days. Once finalized, the funds will be handed over to the Pune collector," Anbalagan stated.
Land Acquisition Timeline and Project Scope
Pune Collector Jitendra Dudi confirmed that land acquisition across seven villages is scheduled to commence on March 10, with the entire process expected to be completed by the end of May. This timeline aligns with a deadline previously established by Deputy Chief Minister Devendra Fadnavis. "We are all working collectively to meet this timeline," Dudi emphasized.
The ambitious airport project requires approximately 1,285 hectares, equivalent to about 3,000 acres, spanning the villages of Vanpuri, Kumbharvalan, Udhachiwadi, Ekhatpur, Munjavadi, Khanvadi, and Pargaon. The loan agreement will incorporate specific clauses covering repayment terms, penal interest for any delays, and provisions for potential refinancing at lower rates or a one-time settlement, if permitted under the circumstances.
Financial Structure and Stakeholder Responsibilities
The responsibility for loan repayment has been assigned to a special purpose vehicle (SPV), with costs shared proportionally among key stakeholders. The City and Industrial Development Corporation (CIDCO) will bear 51% of the costs, followed by the Maharashtra Airport Development Company (MADC) at 19%, MIDC at 15%, and the Pune Metropolitan Region Development Authority (PMRDA) at 15%. The MIDC CEO has been directed to negotiate interest rates in consultation with the additional chief secretary (finance) and to closely monitor the disbursal of funds.
The cabinet had initially approved the proposal on February 10, with the subsequent GR issued on February 27 establishing formal accountability norms for the project's execution. This structured approach ensures that all financial and operational aspects are meticulously managed.
Strategic Importance and Economic Impact
Union Minister of State for Civil Aviation and Pune MP Murlidhar Mohol hailed the Purandar airport project as a vital catalyst for the economic development of western Maharashtra. He highlighted that the airport is poised to significantly boost various sectors, including industry, information technology, tourism, and agricultural exports.
"After the Navi Mumbai International Airport, Purandar will provide a major alternative for the region, expanding both passenger and cargo capacity," Mohol explained. He added that the state and central governments are coordinating closely to ensure the project drives infrastructure growth and job creation according to the established schedule, reinforcing its strategic importance in regional development.
