The Centre has granted in-principle approval for the Rs 200 billion greenfield airport at Parandur, near Chennai, with key conditions attached, according to meeting records. One major clause states that the Tamil Nadu government must compensate the Airports Authority of India (AAI) if the Parandur airport begins operations before Chennai airport reaches 35 million passengers annually. However, if this target is met first, no compensation will be required.

The Steering Committee meeting held on March 12 also revealed that AAI has requested 90 acres for a cargo complex at Chennai airport and rights to construct a new terminal. The land currently houses a school and a colony. The State has agreed to the compensation condition and has formed a high-level committee to assess flood risks at the Parandur site, given the presence of water bodies in the area.

This development marks a significant step in Tamil Nadu’s aviation infrastructure but underscores the Centre’s cautious approach, ensuring the full capacity of the existing Chennai facility is first utilised.

Source
Businessline