Maharashtra Advances Purandar International Airport Funding

Maharashtra has moved a step closer to building the long-proposed Purandar International Airport near Pune, with the state cabinet approving a ₹6,000 crore borrowing plan to finance land acquisition. The decision is expected to unlock a critical bottleneck that has stalled progress on the greenfield aviation project for years, positioning it as a future economic catalyst for western Maharashtra. 

The proposed airport, officially named Purandar International Airport, is planned to ease capacity pressure at Pune’s existing Lohegaon facility, which operates under defence constraints and limited expansion scope. State officials have indicated that most regulatory and procedural clearances for the new airport are in place, with acquisition of private and agricultural land remaining the primary hurdle.
To operationalise the funding structure, the cabinet has cleared the creation of a Special Purpose Vehicle bringing together three state-linked agencies   the industrial development corporation, the airport development company and the Navi Mumbai planning authority. The SPV will raise the loan, with repayment obligations shared proportionately among participating entities. Senior officials familiar with the plan said discussions are underway with a public sector financial institution to structure the borrowing.

Alongside the financing approval, the state has formalised the mechanism for determining compensation under provisions of the industrial development law applicable to the notified area. Once rates are notified through an official circular, district authorities are expected to begin disbursing payments to affected landowners. The Purandar International Airport project has faced resistance from sections of the local farming community, with concerns ranging from compensation adequacy to livelihood disruption. In a parallel move aimed at easing tensions, the state has initiated the withdrawal of cases filed during earlier protests. Policy analysts say such steps are often necessary to restore trust in land-led infrastructure development, particularly where large tracts of agrarian land are involved.

From an urban planning perspective, the airport is viewed as a strategic lever for regional growth. Aviation-linked infrastructure typically drives logistics hubs, warehousing clusters and commercial real estate along access corridors. Pune’s expanding manufacturing, IT and education sectors have long argued for improved international connectivity to sustain competitiveness. However, infrastructure experts caution that airport-led expansion must be integrated with sustainable land-use planning and multimodal connectivity. Without strong rail and road integration, greenfield airports risk generating car-dependent growth and unplanned peri-urban sprawl. Climate resilience is another factor, with planners increasingly emphasising energy-efficient terminal design and water-sensitive site development.

If land acquisition proceeds without further disruption, the Purandar International Airport could reshape Pune’s economic geography over the next decade. The immediate challenge lies in balancing timely execution with equitable rehabilitation, ensuring that the project’s growth narrative aligns with responsible and inclusive urban development.

Maharashtra Advances Purandar International Airport Funding