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Parandur Airport Project Scrapped Tamil Nadu Plans New Airport Site, Chennai to Get 5th Terminal

Aug 24 2026

Parandur Airport Project Scrapped Tamil Nadu Plans New Airport Site, Chennai to Get 5th Terminal

The Tamil Nadu government has dropped the proposed greenfield airport project at Parandur and announced that an alternative location will be identified for the proposed airport. The government said new sites are currently being considered, with expert teams set to conduct technical feasibility studies before a final location is selected. The new site is expected to be finalised after evaluating factors including land suitability, connectivity and infrastructure requirements. The decision comes amid concerns over the impact of the earlier proposed location on local communities and agricultural land. The Parandur proposal would have required the relocation of a large number of people and affected agricultural areas. The government will now examine alternative locations for the proposed greenfield airport. Expert teams will assess the technical feasibility of the shortlisted sites before the final location is announced The study is expected to consider the availability and suitability of land, connectivity, infrastructure requirements and the potential impact on surrounding settlements and agricultural areas. Alongside the search for a new airport site, the government has announced plans to expand the existing Chennai airport. A fifth terminal is proposed on the north-western side of the airport. The new terminal is expected to handle an additional 20 million passengers annually, significantly increasing the airport's overall capacity. Chennai airport currently handles around 30 million passengers a year. Once the under-construction Terminal 3 becomes operational, the airport's capacity is expected to increase to approximately 34 million passengers annually. The proposed fifth terminal would add another 20 million passengers to the annual capacity, potentially taking the airport's overall capacity to around 54 million passengers per year. The proposed expansion is also expected to have implications for the surrounding real estate market. Higher passenger capacity and improved aviation infrastructure could support demand for residential properties, commercial developments, hotels, logistics facilities and rental housing in well-connected areas around the airport. However, property investors are likely to closely watch the government's decision on the alternative greenfield airport site. Areas surrounding the eventual location could emerge as new development corridors once supporting infrastructure and connectivity plans are confirmed. The immediate priority is to identify and technically evaluate alternative locations for the proposed airport. Until the new site is officially confirmed, property buyers and land investors should avoid making investment decisions based purely on speculation about potential airport locations. The government's next announcement on the new airport site and supporting infrastructure is expected to be closely watched by the real estate and infrastructure sectors.

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