Tamil Nadu Govt Agrees to Compensate AAI for Early Operation of Parandur Airport

Strategic Insights -

The state government of Tamil Nadu has agreed to compensate the Airports Authority of India (AAI) if the proposed greenfield airport at Parandur becomes operational before the targeted 35 million passengers per annum (MPPA) are reached at Chennai International Airport. This decision was made during a steering committee meeting on March 12 in New Delhi, where AAI Chairman Vipin Kumar supported the proposal for the Parandur airport. Kumar cited the National Civil Aviation Policy (NCAP) and stated that the state government should compensate AAI if the Parandur airport becomes operational before Chennai airport reaches its target of 35 MPPA. The compensation can be mutually decided when the need arises.

Key Takeaways:

  • The Tamil Nadu government has agreed to compensate AAI for the early operation of the Parandur airport, if it happens before 35 MPPA are reached at Chennai International Airport.
  • The proposed Parandur airport is expected to handle 20 million passengers annually after its first phase is completed in 2028.
  • The airport's terminal building, with a proposed size of 3.5 lakh sqm, may not be able to handle 20 million passengers, as it deviates from the International Air Transport Association's Airport Development Reference Manual.
  • The Airports Economic Regulatory Authority (AERA) has recommended further optimization of the proposed aeronautical infrastructures to keep tariffs levied on airlines under control.
  • The state government has given assent to the construction of a new terminal at Chennai airport and an additional land allocation of 90 acres for the expansion of the cargo terminal.
  • Chennai airport currently handles 30 million passengers annually, and authorities hope to increase this number to 35 million with the completion of phase II of the international terminal.

Statistics:

  • The estimated cost for the development of the greenfield airport in Parandur is ₹ 27,000 crore.
  • The proposed size of the terminal building in the first phase is 3.5 lakh sqm.
  • Chennai airport currently handles 30 million passengers annually.
  • Authorities hope to increase this number to 35 million with the completion of phase II of the international terminal.
  • The proposed Parandur airport is expected to handle 20 million passengers annually after its first phase is completed in 2028.

Sources:

  • Minutes of the meeting of the steering committee (available in the public domain)
  • National Civil Aviation Policy (NCAP)
  • Times of India, "Tamil Nadu govt agrees to compensate AAI for Parandur airport"