Urgent.News

What's breaking now, across thousands of outlets.

Business

TN scraps Parandur airport, risks falling behind

Tamil Nadu, the second wealthiest state in India with a gross state domestic product exceeding $400 billion, has been experiencing robust economic growth for years. The region boasts a high human development index, with excellent enrolment rates and life expectancy. However, the state is currently lacking an airport that meets international standards.

Chennai's Meenambakkam airport, while significant, falls far short of global benchmarks. Other key airports in Coimbatore, Madurai, Thoothukudi, and Tiruchirappalli also lack the capacity to adequately serve the state's needs by 2026.

The proposed greenfield airport at Parandur, located near Chennai, was initially seen as the solution to this aviation gap. The project, estimated at ₹27,400 crore and spanning over 5,000 acres, including 3,000 acres of agricultural land, was set to handle up to 100 million passengers annually. The airport was intended to rival other southern Indian airports like Bengaluru and Hyderabad, which have gained prominence through privatization efforts.

However, the Parandur airport project has been scrapped in a bid to fulfill a campaign promise made by the Tamilaga Vetri Kazhagam (TVK). The new chief minister, C Joseph Vijay, announced the abandonment of the project during his inaugural political event after forming the party in October 2024. While the government claims that the decision was made to respect farmers and protect water bodies, concerns have been raised about the potential consequences of this decision on Tamil Nadu's economic growth and competitiveness.

Without a second large-scale airport, Tamil Nadu risks losing crucial trade, cargo, and investment to neighboring states with more advanced aviation infrastructure. The state's reliance on Chennai's Meenambakkam airport, which is already struggling with capacity constraints, could lead to a significant economic setback. Experts warn that the lack of a second airport could push Tamil Nadu back by a decade in terms of air services and overall economic development.

The uncertainty surrounding the project's cancellation has also created challenges in identifying alternative airport sites, with potential social unrest and land acquisition delays posing significant obstacles.

Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Read the original at economictimes.indiatimes.com →

More in Business

Disturbing Signals from The Gambia

Something is brewing in The Gambia, our fellow West African country. Ordinarily, it looks like a simple, routine banking regulation exercise which should not worry any observer, but I fear

  • Central Bank of The Gambia mandates Gambian staff replacement by Dec 31, 2026.
  • Directive issued after Aug 27 meeting, claims compliance with Labour Act 2023.
  • CBN informed, seeks detailed action plan from The Gambia's Central Bank.

True meaning of a successful workplace

LETTERS: A workplace is not truly successful simply because it produces more, earns more or achieves its targets. A truly successful workplace is one where people can return home safely and in good health at the end of every working day.

More from Sunday 4 October →