Expansion of Coimbatore International Airport is one of the long pending demands of the city, and it picked up pace soon after the DMK-led State Government took charge in 2021. The State Government recently acquired more than 550 acres of land that is required for expanding and modernizing the airport, by providing the necessary compensation to the land owners. 

It is ready to provide this land to the Airport Authority of India (AAI) for expanding the airport under certain conditions. It has laid down these conditions to AAI as there are many reports stating that the Central Government is thinking about privatizing 25 airports in India including 4 in Tamil Nadu such as Chennai, Coimbatore, Madurai and Trichy airports between 2022 and 2025. 

In September 2023, the Coimbatore District Administration gave a nod to the AAI to enter the land acquired by the State Government upon permission. Should the AAI agree to the terms and conditions set by the state government, it can step inside this land and start the modernization works. AAI is yet to receive the land from the State.

Sources said on Monday (11.12.23) that the Heads of AAI are considering receiving the 558.87 acres of land, and they are going through the terms and conditions laid down by the state government regarding this. It is hoped that AAI will soon announce its final decision, and eventually begin the expansion works.

The acquired 500+ acres of land have been fenced by the Coimbatore City Corporation, and they are awaiting like the rest of Coimbatore for the modernization.

Back in April 2023, Finance Minister PTR said that Tamil Nadu Government is firm that the ownership of this acquired land will not be transferred to the AAI/Union Govt., instead it will be leased for a lower price. 

According to Tamil Nadu Government, this lease would include a clause that the lease amount would be kept at a minimum token value as long as the airport was operated by AAI itself. If the Union Govt decides to hand over the airport to private players, the lease payments to Tamil Nadu would go up to reflect the then-prevailing market value of the land, or the State should get an equity stake in the airport equivalent to the then-prevailing value of the land.

The Minister further said that the State Government has declined AAI’s suggestion that they should have the right to sub-lease the land to a private operator (at the concessional lease rent) without our consent (and at the token value lease payment).