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

At present, the Jharsuguda airstrip handles only a limited number of chartered flights. Once upgraded, the facility is expected to transform regional air connectivity across western Odisha. Under the agreement, the state government will contribute Rs 750 million towards the project and provide 296.5 acres of land — including 118.7 acres immediately — free of cost. AAI has committed to completing construction within two years.

The new airport is set to ease pressure on Bhubaneswar’s Biju Patnaik International Airport and support rising air travel demand in the region.