The state government of Odisha has reached out to the Airports Authority of India (AAI) to participate in the bidding process for the much-anticipated Shree Jagannath International Airport at Puri.
The project, which is expected to play a crucial role in boosting the region’s economy, will be developed in phases, with the first phase estimated to cost ₹2,200 crore.
A high-level delegation, including Odisha Chief Secretary Manoj Ahuja and the Principal Secretary of Commerce and Transport Usha Padhee, recently met officials from the Ministry of Civil Aviation to discuss the state’s evolving aviation infrastructure. Among the topics discussed was the Puri airport project, with a proposal to integrate AAI’s expertise into the development process.The move signals a potential shift in the state’s approach, as previously, private players such as Fairfax, Adani, and the GMR Group had shown interest in developing the airport under the Public-Private Partnership (PPP) model. However, the government now seems inclined to include AAI in the bidding process, which may result in a more structured and transparent development model, ensuring better control and efficiency.
Sources suggest that if AAI agrees to participate in the rebidding process, the government is also open to exploring a PPP model, depending on the response. The decision comes after AAI expressed concerns about the possible diversion of passenger traffic from the existing Biju Patnaik International Airport in Bhubaneswar once the Puri airport becomes operational. To address these concerns, the state government has assured that it will provide financial compensation, in line with existing aviation policies, should there be a loss of traffic.The Puri airport is set to be developed at an estimated cost of ₹5,631 crore in three phases. Once completed, it is expected to handle up to 4.6 million passengers annually, significantly improving air connectivity to the region, which is a key tourist and cultural hub. However, the project has encountered hurdles related to environmental clearance.
The Ministry of Environment, Forest, and Climate Change (MoEF) is yet to approve the diversion of 27.88 hectares of forest land in Sipasarubali and Sandhapur areas under Brahmagiri tehsil, which has raised concerns about the ecological impact of the development.The Forest Advisory Committee (FAC) has called for clarifications on how the airport will affect the nearby Chilika Naval base and the habitat of endangered species such as Olive Ridley turtles and Irrawaddy dolphins. The FAC has also stressed the importance of obtaining coastal regulation zone clearance before the forest clearance can be granted. The state government has assured that it is working towards addressing these concerns and is now in the compliance stage.
As the project progresses, the Odisha government has initiated the process of acquiring 221 acres of private land for the construction of the airport. A compensation package has also been prepared for displaced families, and public hearings are scheduled to take place in Sipasarubali and Shandhapur villages on April 9 and 11, respectively.
While the Shree Jagannath International Airport project has faced challenges in its early stages, its completion promises to provide a major boost to Odisha’s infrastructure, economy, and tourism sector. With AAI’s potential involvement, the project could set a new precedent for efficient, sustainable airport development in India.
