Tamil Nadu Government Abandons Parandur Airport Project, Proposes Alternative Sites in Policy Note

The Tamil Nadu government has defended its decision to abandon the proposed ₹27,000-crore greenfield airport project at Parandur, citing risks to agricultural livelihoods and natural water drainage systems. The announcement was detailed in the Industries, Investment Promotion and Commerce Department’s Policy Note for 2026-27, which was tabled in the Assembly on Tuesday.

During the Assembly session, Industries Minister S Keerthana assured lawmakers that land acquisition for any alternative airport site would not come at the cost of agriculturists. Explaining the rationale behind dropping the Parandur project, the Minister noted that the region features a long history of cultivating rice, groundnuts, pulses, and sugarcane. The area's water bodies allow for cultivation even during periods of insufficient rainfall, and two canals naturally divert water toward the Adyar river and Chembarambakkam lake.

"Those water flows should not be obstructed," Minister Keerthana stated, warning that disrupting the local drainage network could increase flood risks in Chennai. Law and Electricity Minister CTR Nirmal Kumar added that the previous administration had neither secured environmental clearance nor completed the required Environment Impact Assessment for the project. Out of the 5,846 acres initially identified for the Parandur airport, patta land accounted for 3,774 acres, agricultural land constituted 2,681 acres, and government land spanned 1,972 acres, which included nearly 1,558 acres of water bodies.

To address future aviation needs, the policy note outlines plans to identify new alternative locations for a greenfield international airport near Chennai in consultation with experts. Feasibility studies for these newly identified locations will be carried out through the Airports Authority of India (AAI), and the State government will take subsequent steps based on AAI's recommendations.

Concurrently, the state plans to expand the existing Chennai airport. The AAI has proposed building a new passenger terminal on the north-western side of the airport and has requested state support and clearances to construct an elevated road connecting the terminal to the National Highway. The Tamil Nadu government has confirmed it will assist the AAI in executing this expansion.

Beyond the Chennai region, the state government is pursuing several other aviation infrastructure projects. A greenfield airport is proposed in Krishnagiri district to address rising passenger and cargo demand in the Hosur-Krishnagiri industrial belt. Another greenfield project is planned in Ramanathapuram district to boost regional economic development and tourism in Rameswaram and surrounding areas. Additionally, infrastructure work for the new Vellore airport has concluded, and operations will begin once approvals are granted by the competent authority.

"Infrastructure development must carefully balance economic expansion with environmental and ecological preservation. The Tamil Nadu government's decision to drop the Parandur airport project highlights the critical importance of safeguarding natural water bodies and agricultural land to prevent urban flooding. For businesses and industrial planners, clarity on alternative airport sites and regional connectivity projects in Hosur, Ramanathapuram, and Vellore will be vital for long-term logistics and supply chain planning in the state." — Dr. Shishir Gupta, Founder & CEO, StartupLanes