The proposed second airport in Chennai has crossed a major milestone with the Tamil Nadu government officially approving compensation for landowners in Parandur, Kancheepuram district. The payout, ranging between ₹3.5 lakh and ₹25.7 lakh per acre, marks a critical step in advancing the ₹20,000 crore greenfield airport project. With land acquisition challenges previously stalling progress, this compensation decision is expected to accelerate infrastructure work while addressing concerns around displacement and land rights.
The greenfield airport at Parandur, intended to serve as Chennai’s second major aviation hub, has been under planning and scrutiny due to land acquisition hurdles. With over 4,500 acres of land required for the project, resistance from local stakeholders had slowed progress. The newly announced compensation package provides landowners with rates ranging between ₹3.5 lakh and ₹25.7 lakh per acre, depending on the land classification and use. Authorities have also stated that other forms of relief, including rehabilitation and alternate housing, will follow in phases. Experts believe this resolution will enable smoother negotiations between agencies and affected families, potentially avoiding extended legal or social disputes. The project is seen as vital for decongesting Chennai International Airport, which is operating beyond capacity. With site clearances and environmental approvals already in motion, the compensation approval is viewed as the final enabler before large-scale construction can commence.
Infrastructure analysts note that the Parandur airport is expected to generate significant employment and regional growth, offering long-term economic dividends. Strategically located in Kancheepuram district, the proposed facility is designed to handle over 100 million passengers annually once completed. The surrounding area is expected to see rapid development in logistics, hospitality, warehousing, and transportation sectors. International financing agencies and private players have already expressed interest in participating in public-private partnerships once land acquisition is complete. While resistance from residents in nearby villages remains a challenge, the revised compensation rates could encourage wider acceptance. Authorities are expected to begin physical surveys and relocation planning in the coming weeks. Industry insiders argue that Tamil Nadu’s approach to balancing development and compensation could set a benchmark for similar large-scale infrastructure projects across India, especially those facing stiff opposition on land use and displacement grounds.
The approval of compensation for land acquisition in Parandur marks a decisive moment for Chennai’s long-awaited second airport. While the proposed project still faces hurdles around relocation and public consensus, the financial clarity given to landowners could help resolve key disputes. The move not only enables the airport’s progress but also opens the door to significant regional transformation. With environmental, economic, and social aspects in close focus, the Parandur greenfield airport stands as a test case for infrastructure-led development in India’s urbanising corridors—one that must balance progress with people-centric policies.
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Chennai clears ₹3.5 to 25.7 lakh payouts for airport landowners
