Pune: State Govt Approves Rs 6,000 Crore Loan Guarantee for Purandar Airport Project

Pune, 25th April 2026: The Maharashtra government has approved a state guarantee for a Rs 6,000 crore loan to be raised by the Maharashtra Industrial Development Corporation (MIDC) for land acquisition required for the proposed Chhatrapati Sambhaji Raje International Airport at Purandar in Pune.

The guarantee will remain valid for one year, during which the loan must be raised and the funds utilised for acquiring land and paying compensation to farmers. An official general resolution in this regard was released by the government on Friday.

Around 3,000 acres of land is proposed to be acquired for the greenfield airport project in Purandar. The state government had earlier, on February 10, approved raising a Rs 6,000 crore loan for the purpose.

The state cabinet had also decided to form a special purpose vehicle (SPV) comprising MIDC, Maharashtra Airport Development Company (MADC), City and Industrial Development Corporation (CIDCO) and Pune Metropolitan Region Development Authority (PMRDA) to execute the airport project.

As per the plan, the district administration will complete the acquisition process and transfer the land to MIDC. The cabinet had authorised MIDC to arrange funds for the acquisition exercise.

Sources said procedural formalities related to land acquisition have largely been completed, but the process has not begun on the ground as compensation rates are yet to be finalised. Officials expect the latest decision to speed up rate fixation and enable the start of acquisition.

For repayment of the loan, CIDCO will bear the largest share at 51 per cent, followed by MADC at 19 per cent, while MIDC and PMRDA will contribute 15 per cent each.

Although MIDC has been designated the lead borrower, the repayment burden will be shared among the participating agencies through the SPV.

Officials said MIDC will now have to promptly raise the loan and transfer the amount to the district administration for compensation disbursal to landowners. If the SPV is unable to repay the loan, the state government will step in to clear the dues.