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

At present, the Jharsuguda facility, operated by AAI, caters only to a few chartered flights. Odisha currently has just one operational full-scale airport — the Biju Patnaik International Airport in Bhubaneswar.

Under the new agreement, the state government will contribute Rs 750 million towards the project. AAI already holds 909.22 hectares of land in Jharsuguda, while the state has agreed to provide an additional 296.5 acres free of cost, including 118.75 acres to be transferred immediately.

AAI Chairman Alok Sinha said, “We can complete construction of the airport within two years from the date of land acquisition.”

Once operational, the Jharsuguda airport is expected to significantly enhance regional air connectivity and spur economic development across western Odisha.