The Tamil Nadu government has approved land acquisition rates for the ambitious Greenfield airport project proposed at Parandur in Kancheepuram district. The decision marks a critical step towards implementing Chennai’s second airport, which is expected to significantly ease air traffic congestion at the existing Chennai International Airport and drive regional economic growth.
The announcement was made following the State High-Level Committee meeting chaired by Chief Minister MK Stalin on Monday. Senior officials from the Industries Department, Revenue Department, and Tamil Nadu Industrial Development Corporation (TIDCO) were present during the approval process.
Details of land acquisition and compensation plan
The government has notified the compensation rates for both patta (private) lands and assigned lands, ensuring that affected landowners receive fair and market-linked compensation. The rates are determined based on the latest guideline values, market analysis, and field verification reports by district authorities.
As per officials:
- Private patta lands in core project area: Compensation at two times the guideline value plus solatium and rehabilitation assistance as per the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
- Assigned government lands occupied by families: Compensation and rehabilitation package to ensure livelihood support and housing benefits as per state policy.
Break-up of approved land acquisition rates
| Type of Land | Average Guideline Value (Rs per acre) | Approved Compensation Rate (approx) |
|---|---|---|
| Patta agricultural lands | 25 lakh | 50-55 lakh per acre |
| Patta non-agricultural lands | 40 lakh | 80-85 lakh per acre |
| Assigned lands | NA | Resettlement & rehabilitation package with alternate housing and livelihood support |
Senior Revenue Department officials said that detailed award proceedings will be prepared for each land parcel to ensure transparency, with payments to be released directly to bank accounts of landowners post verification.
Importance of Parandur Greenfield airport project
The Parandur airport project, to be implemented under the PPP mode with Airports Authority of India as technical partner, is estimated at Rs 20,000 crore and will be built in phases. It will cater to over 100 million passengers annually once fully operational by 2035.
Key features of Parandur airport
- Total land area required: 4,563 acres
- Distance from Chennai city: ~70 km
- Runways: Two parallel runways with provision for Code-F aircraft
- Passenger terminals: Two integrated terminals in phase-wise development
- Multimodal connectivity: Rail, metro, and expressway integration planned
- Employment potential: Direct and indirect employment to over 1 lakh people
Government’s approach to land acquisition
Chief Minister MK Stalin reiterated that the state government is committed to a fair and humane acquisition process. He directed officials to conduct:
- Continuous consultation with affected farmers, residents, and village panchayats
- Awareness meetings to explain compensation, resettlement, and job opportunities
- Grievance redressal camps in each affected village
The Chief Minister said, “Parandur airport is a dream project that will propel Tamil Nadu to the forefront of South Asia’s aviation and logistics hub. At the same time, our government ensures that farmers and families giving land for public purpose are treated with dignity, respect, and fairness.”
Farmers’ reaction to the approved rates
While a section of farmers welcomed the revised compensation rates as an improvement over earlier offers, others expressed concerns regarding livelihood loss and displacement from ancestral agricultural lands.
R. Murugan, a farmer from Ekanapuram village, said, “We have been demanding higher rates to reflect the real market value and to secure our families’ future. The new rates are better, but we want assured jobs for our children and land for farming if possible.”
On the other hand, women self-help groups in Parandur expressed interest in utilising compensation funds for micro-enterprises, dairy units, and textile production, if adequate skill training and market support are provided.
Concerns raised by local residents
Key concerns highlighted by local residents include:
- Displacement from traditional homes and community spaces
- Impact on water bodies and irrigation channels in the project area
- Uncertainty over alternative livelihood opportunities post-acquisition
- Need for proper environmental and social impact mitigation measures
Government’s proposed rehabilitation and resettlement measures
The Tamil Nadu government has promised a comprehensive resettlement and rehabilitation (R&R) package, which includes:
- Developed residential plots in nearby locations with road, water, electricity, and sanitation facilities
- Monetary compensation for structures and crops lost
- One-time resettlement allowance
- Skill development training and employment facilitation under Tamil Nadu Skill Development Mission
Officials said detailed R&R plans will be shared with stakeholders in upcoming gram sabha meetings to incorporate community feedback.
Environmental considerations in Parandur project
Environmental activists have urged the state to conduct cumulative ecological assessments as the site includes wetlands, agricultural lands, and small lakes. The Tamil Nadu Pollution Control Board has initiated the process for public consultation ahead of submitting the Environmental Impact Assessment (EIA) report to the Ministry of Environment, Forest and Climate Change.
Experts suggested:
- Designing runways and terminals with minimum hydrological disruption
- Integrating green airport principles such as solar power, zero waste, and efficient water recycling
- Compensatory wetland conservation projects in neighbouring districts
Industry perspective on Parandur airport
The Confederation of Indian Industry (CII) Tamil Nadu State Council welcomed the approval of land acquisition rates. In its statement, CII said, “Parandur airport will be a game changer for the state’s economy, facilitating global connectivity for manufacturing exports, textiles, leather, automobiles, IT services, and tourism.”
CII has also suggested developing a dedicated airport economic zone near Parandur with logistics hubs, MRO (Maintenance Repair Overhaul) facilities, aviation training centres, and cargo parks to maximise employment and investment potential.
Next steps in project implementation
The state government has directed TIDCO and the district administration to:
- Complete award proceedings and compensation disbursement by December 2025
- Commence preparatory works including land surveys, soil tests, and fencing from January 2026
- Finalise concessionaire selection through a global bidding process by mid-2026
Final analysis
The approval of land acquisition rates for the Parandur airport project marks a significant milestone in Tamil Nadu’s infrastructure development roadmap. With proactive government engagement, fair compensation, and inclusive rehabilitation, the project has the potential to transform the state into an aviation, logistics, and export hub in South Asia, while ensuring that affected communities are integrated into this growth story with dignity and economic security.
