BHUBANESWAR: In a significant development, the Odisha government has decided to approach theAirports Authority of India (AAI) to participate in the bidding process for the construction of the Shree Jagannath International Airport at Puri.
Sources said, a high-level delegation of officials comprising chief secretary Manoj Ahuja and principal secretary of Commerce and Transport department Usha Padhee met officials of the Ministry of Civil Aviation last week and discussed the proposed airports in the state including Puri.
“The Transport department will coordinate with the AAI for their participation in the rebidding. The state government will explore further action under the public-private partnership (PPP) model, if required, based on AAI’s response,” a senior official confirmed.
The Industrial Infrastructure Development Corporation (Idco) had initially floated tenders in February 2024 for the first phase construction at a cost of Rs 2,200 crore. While several private players, including Fairfax, Adani, and GMR Group, had earlier expressed interest in developing the airport under the PPP model, the government’s decision to involve AAI now signals a possible shift in approach.
The AAI had earlier expressed reservations regarding the potential loss of passenger traffic at Bhubaneswar airport once the Puri airport becomes operational. The state government had then assured of financial compensation as per the provisions in the existing aviation policies, in case of any loss due to traffic diversion.
The airport is estimated to be developed at a cost of Rs 5,631 crore in three phases and handle 4.6 million passengers per annum. The project is, however, yet to get the clearance from the Ministry of Environment, Forest, and Climate Change (MoEF) for diversion of 27.88 hectare of forest land in Sipasarubali and Sandhapur areas under Brahmagiri tehsil.
The Forest Advisory Committee (FAC) had raised concerns regarding the ecological impact of the project and sought clarifications on how the airport would affect the nearby Naval base at Chilika, habitat and migration route of endangered Olive Ridley turtles, and Irrawaddy dolphins.
“The FAC had also stressed the necessity of obtaining coastal regulation zone clearance before the forest clearance. This is now under compliance stage,” said a forest official.
Meanwhile, the state government has begun the process for acquisition of 221 acre of private land and prepared a compensation package for each displaced family. The final phase public hearing has been scheduled to be held in Sipasarubali village on April 9 and in Shandhapur village on April 11.