Maharashtra clears ₹6,000cr loan for Purandar airport with strict riders; land acquisition to start from March 10

Pune: The Maharashtra govt on Friday cleared a Rs6,000 crore loan for land acquisition for the proposed Purandar international airport, while imposing strict financial riders on the approval.In a govt resolution (GR) issued by principal secretary (industries) P. Anbalagan, the industries department granted the Maharashtra Industrial Development Corporation (MIDC) approval and a state guarantee to raise the funds from the Housing and Urban Development Corporation (HUDCO) or other financial institutions at competitive rates.
The GR mandates that MIDC strictly comply with fiscal responsibility and budget management (FRBM) norms to ensure fiscal discipline. The loan must be used exclusively for land acquisition and related works within a stipulated timeframe. "MIDC will have to submit regular monthly or half-yearly reports to the state govt regarding repayment and financial status," the GR stated."We are currently in negotiations with financial institutions and expect to complete the process within 10–15 days. Once finalised, the funds will be handed over to the Pune collector," Anbalagan said. The loan agreement will include specific clauses regarding repayment terms, penal interest for delays, and provisions for refinancing at lower rates or a one-time settlement (OTS), if permitted.Pune collector Jitendra Dudi confirmed that land acquisition across seven villages is scheduled to begin on March 10. The process is expected to be completed by the end of May, aligning with a deadline previously set by deputy chief minister Devendra Fadnavis. "We are all working collectively to meet this timeline," Dudi told TOI.The project requires approximately 1,285 hectares (about 3,000 acres) across the villages of Vanpuri, Kumbharvalan, Udhachiwadi, Ekhatpur, Munjavadi, Khanvadi, and Pargaon.The responsibility for repayment lies with a special purpose vehicle (SPV), with costs shared proportionally among its stakeholders: CIDCO (51%), MADC (19%), MIDC (15%), and PMRDA (15%). The MIDC CEO has been directed to negotiate interest rates in consultation with the additional chief secretary (finance) and monitor the disbursal of funds.The cabinet had initially approved the proposal on Feb 10, and the subsequent GR issued on Feb 27 established the formal accountability norms for the project's execution.Union minister of state for civil aviation and Pune MP Murlidhar Mohol hailed the project as a vital catalyst for western Maharashtra. He said the airport would significantly boost industry, IT, tourism, and agricultural exports."After the Navi Mumbai International Airport, Purandar will provide a major alternative for the region, expanding both passenger and cargo capacity," Mohol said. He added that the state and central governments are coordinating closely to ensure the project drives infrastructure growth and job creation on schedule.