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Tamil Nadu has dropped plans to build a second airport for Chennai at Parandur, a project estimated to cost INR 274 billion (USD 2.86 billion), and is now looking at alternative locations with less impact on agricultural land. The proposed airport had received civil aviation clearance under the previous government but faced opposition from farmers. Chennai is a major manufacturing and industrial centre, with factories and suppliers linked to Hyundai, Renault, Apple, Foxconn and Tata Electronics. The state also plans to expand the existing airport’s capacity from 30 million to 55 million passengers annually.
Tamil Nadu Chief Minister Joseph Vijay said the state government has decided to move away from the proposed second airport at Parandur near Chennai and is considering alternative sites that would have a lower impact on agricultural land.
The previous government had secured civil aviation clearance for the Parandur airport, which was estimated to cost INR 274 billion (USD 2.86 billion). The project had faced opposition from farmers over its impact on agricultural land.
Chennai is a major manufacturing centre and is often referred to as India's Detroit. The city hosts manufacturing facilities of Hyundai and Renault, along with suppliers for Apple, including Foxconn and Tata Electronics. Industry groups have been calling for additional aviation capacity to support the city's growing manufacturing and business activity.
Consultancy Colliers had earlier estimated that the proposed airport could generate demand for industrial parks, air-cargo warehousing and manufacturing facilities in the surrounding areas.
Ravichandran Purushothaman, chairman of the southern region of the Confederation of Indian Industry, said the government needs to finalise an alternative location quickly and give priority to the project to support Chennai's expanding industrial, manufacturing, logistics and services sectors.
Tamil Nadu accounts for around 15% of India's factories and manufacturing employment, the highest share among Indian states, according to a federal government statement issued last year.
Alongside the search for a new site for the second airport, the state government plans to expand Chennai's existing airport. The airport currently handles around 30 million passengers a year, and its capacity is planned to increase to 55 million through an upgraded existing terminal and construction of a new terminal.
The change in airport plans comes as Tamil Nadu continues to attract fresh investment. The state signed nearly 100 investment agreements worth INR 674.52 billion during the month, including commitments from France's Saint-Gobain, Indian jewellery company Titan and US-based server maker Super Micro Computer.
Source Reuters
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