State Issues Rs 6,000 Crore Guarantee to Kickstart Purandar Airport Land Acquisition
The Maharashtra state finance department has officially issued a Government Resolution (GR) providing a ₹6,000 crore state guarantee to facilitate land acquisition for the proposed Purandar International Airport. This move formalizes the financial structure following the state cabinet’s approval in February, allowing the MIDC to raise competitive loans from HUDCO or other financial institutions. The funds are strictly earmarked for the acquisition of 1,285 hectares (approx. 3,000 acres) across seven key villages, including Pargaon, Khanvadi, and Kumbharvalan. To safeguard the state exchequer, the GR includes a 12-month validity period, a 0.5% annual guarantee fee, and a strict monitoring clause that renders the guarantee invalid if lenders fail to report a default within 90 days.
The responsibility for loan repayment lies with a dedicated Special Purpose Vehicle (SPV), dominated by CIDCO (51%), alongside MADC (19%), PMRDA (15%), and MIDC (15%). Each entity is liable for the debt in proportion to its shareholding, effectively "ring-fencing" the state’s direct financial exposure. The project enters a critical phase with MIDC mandated to submit audited accounts and monthly progress reports, while penal interest rates as high as 24% have been set for any delays in guarantee fee payments. This structured financial backing is expected to finally unlock the land-buying process for Pune's long-delayed second airport, provided the strict end-use compliance and monitoring norms are met.
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