MIDC Plans to Seek Private Funds for Purandar Airport Land Acquisition
The Maharashtra Industrial Development Corporation (MIDC) is considering reaching out to private financial institutions and banking consortiums to fund the land acquisition for the Purandar airport project. With the state government’s finances already stretched due to welfare schemes like Ladki Bahin Yojana, MIDC is looking to avoid placing an additional burden on the state’s exchequer.
The proposed Purandar airport, which is expected to boost air traffic and enhance connectivity for Pune and its surrounding areas, will require approximately 2,832 hectares of land across seven villages. The estimated cost of acquiring this land is between Rs 6,000 crore and Rs 8,000 crore. In light of the state’s budgetary commitments, MIDC is exploring alternative financing options, including engaging private financial institutions, public sector undertakings specialising in housing finance, and infrastructure project finance. A senior MIDC official stated, “There will be no additional burden on the exchequer as we are exploring all options. We are a corporation and we are not likely to seek funds from the state government.” The official added that a final decision would be made soon, and they are hopeful that the project will continue as planned without depending on state funding.
The MIDC is expected to issue a notification for the land acquisition by the end of February 2025. This notification will mark the beginning of the land procurement process, which will be conducted in line with the MIDC Act provisions. Once the notification is released, the process of acquiring land from the seven villages involved will be initiated. Officials from the district administration, who will assist MIDC with the acquisition, are awaiting further directions. A senior official said, “As of now, we have been told that MIDC will first issue a notification and will then proceed with the acquisition as per the provisions of the MIDC Act.” The state government has set ambitious timelines for the project, aiming to complete the Purandar airport and make it operational by March 2029. Union Minister of State for Civil Aviation, Muralidhar Mohol, who was present during a recent meeting regarding the project, emphasised the growing need for the new airport. “Pune and its surrounding areas are developing rapidly, and the number of air passengers and air traffic is increasing. While the current Pune airport is well-equipped, the new Purandar airport is crucial to meet the future demands of the city,” Mohol said.
The project to establish the Purandar airport is an integral part of Maharashtra’s long-term plans to develop critical infrastructure to keep pace with the region’s economic growth. MIDC’s move to seek private funding for the land acquisition indicates a pragmatic approach to securing the necessary resources without further straining the state’s finances. The focus on private financial institutions reflects the broader trend of leveraging the private sector’s capabilities in funding infrastructure projects. This shift is particularly important in light of the state’s financial constraints, as it ensures the smooth progress of major projects like the Purandar airport without depending heavily on government funds. The airport project is expected to play a pivotal role in shaping Pune’s future, both as a business hub and a key player in India’s growing aviation sector. With the demand for air travel set to increase, the Purandar airport will help meet the growing needs of the city and the wider region. As MIDC continues to explore private funding options for the Purandar airport land acquisition, the project is steadily moving forward. While the state’s budget constraints have prompted the shift towards private financing, the ambitious timeline for the airport’s completion remains intact. With the target set for 2029, the Purandar airport will not only enhance Pune’s connectivity but will also support the rapid development of the surrounding areas.
