The Odisha government has signed a memorandum of understanding (MoU) with the Airports Authority of India (AAI) to develop a full-fledged airport at Jharsuguda in western Odisha, with an estimated investment of Rs 2.1 billion.

At present, the Jharsuguda facility handles only a limited number of chartered flights. The proposed expansion will transform it into a major aviation hub, significantly strengthening regional air connectivity. As part of the agreement, the state government will provide Rs 750 million towards the project and allocate 296.5 acres of land — including 118.7 acres to be handed over immediately — free of cost.

AAI has committed to completing the construction within two years.

Once operational, the Jharsuguda airport is expected to support growing passenger demand across western Odisha while reducing the load on the Biju Patnaik International Airport in Bhubaneswar.