The Tamil Nadu government has officially dropped the proposed Parandur greenfield airport project, which had been opposed by farmers and residents for several years.
C Joseph Vijay announced the decision in the Tamil Nadu Assembly on August 24, saying the project has affected the livelihoods of farmers and people living in the surrounding villages. The government will now look for another location for Chennai's second airport.
But the cancellation has raised another important question: Just what will happen to the land that the government has already acquired for the airport?
According to the state government, it has acquired about 1,802 acres of private land out of the total land required for the project. The proposed airport needed around 5,846 acres, meaning less than half of the required land had actually been acquired.
The government has now said that it will not return land acquired so far to the original owners and can use it for public or industrial purposes.
The government may use acquired land for other projects.
The Tamil Nadu government has not said that it will simply return the 1,802 acres to the people who owned the land.
Industries Minister S Keerthana said the government could use the acquired land for industrial projects that do not harm the environment or affect the livelihoods of residents. These could create jobs and support economic activity in the area.
The minister referred to Clause 99 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 while explaining the government's position.
The law generally requires authorities to use acquired land for the purpose for which they acquired it. But some provisions can allow the government to use the land for another public purpose if circumstances have fundamentally changed and the original purpose can no longer be carried out.
This means the government will need to weigh the legal position before deciding how it will use the Parandur land. Changing the purpose of land acquisition may also be challenged by former landowners.
The issue is particularly important because the government has already paid compensation to many landowners.
The previous government acquired around 1,500 acres by early 2026; compensation for agricultural land, according to reports, ranged from 35 lakh to 60 lakh per acre, besides compensation for structures. As part of the rehabilitation package, some affected families got alternative housing sites and houses.
The actual figures have varied depending on the stage of acquisition and the government records cited. The new Assembly figures indicate the acquired private land to be 1,802 acres.
For villagers who opposed the airport, the government’s alternative use could bring some relief if new projects do not damage agricultural land or water systems. Some residents have said they would not object to industrial projects if development does not harm the environment.
The government has also emphasized that the Parandur region has important water bodies and agricultural land. These water systems do help defend Chennai from flooding, according to officials.
Why did Tamil Nadu scrap the Parandur airport project?
The proposal for Parandur Airport had faced opposition almost from the beginning.
The site located in Kancheepuram district around 68.5 km from central Chennai was selected in 2022 as the proposed site of the town’s second airport. The project was expected to take advantage of the growing passenger and industrial demand in Chennai.
But the villages around the proposed site vigorously opposed the project because it would affect agricultural land, homes and water bodies.
The latest Tamil Nadu government defended its decision by pointing out that the land acquisition process was still incomplete. It said only 48% of the required land had been acquired. The government also said the project had not received final environmental clearance.
The state said the proposed site had several water bodies and canals and most of the private land was agricultural.
The cancellation has also triggered political controversy. The opposition DMK has criticised the decision and argued that dropping such a major infrastructure project could hurt Tamil Nadu's economic growth. The ruling government, however, has maintained that protecting farmers, local livelihoods and the environment was more important.
With Parandur off the table, the government has said an expert team will identify an alternative location for Chennai's second airport.
At the same time, Chief Minister Vijay has announced plans to expand the existing Chennai airport. The state would work with the Airports Authority of India on developing a new terminal and improving connectivity, to increase the airport's capacity to around 55 million passengers annually.
The search for a new airport site will not be easy. A large airport requires thousands of acres of land, and finding a location that does not affect agricultural fields, water bodies, homes or existing industries would be a challenge.
And for now, the biggest unanswered question remains the future of 1,802 acres already acquired at Parandur.
The government seems to be looking for other public and industrial uses and not to immediately return the land. But the final decision will have to be made on a legal basis, and to compensate landowners and the environmental value of the land as well.
The Parandur airport could have been cancelled, but the land which has been acquired for it has opened a new chapter in the long-running airport debate.
