High Compensation Fixed for Chennai’s Second Airport Project
In a significant move to accelerate the Parandur Greenfield Airport project — Chennai’s proposed second international airport — the Tamil Nadu government has issued a Government Order fixing generous compensation for landowners. The flat compensation rates, set between ₹35 lakh and ₹60 lakh per acre, far exceed the current guideline values (₹5–17 lakh per acre) in many areas.
For high-value locations, payouts could reach up to ₹2.57 crore per acre through private negotiations. This decision aims to smoothen the acquisition of 3,331.25 acres across Kancheepuram and Sriperumbudur taluks — regions central to this ₹20,000-crore infrastructure push.
Affected Areas and Land Value Brackets
The G.O., issued on June 25 by the Industries Department, initiates the formal land acquisition process under the Tamil Nadu Acquisition of Land for Industrial Purposes Act, 1997. Affected villages include:
- Parandur, Valathur, Ciruvallur, Gunakarapakkam, Akkamapuram, Magadevi Mangalam, Eganapuram, Podavur, Nelvoy, Thandalam, Thodur, and others.
Breakdown of affected lands:
- 1,960.63 acres: Flat rate ₹35–60 lakh/acre (GLV: ₹5–17 lakh)
- 374.53 acres: Negotiable if demands exceed flat rate
- 996.09 acres: GLV above ₹17 lakh — compensation via private negotiation, possibly exceeding ₹2 crore/acre
Legal Pathway for Non-Consent
For landowners unwilling to accept the flat or negotiated rates, the government will acquire lands by following the statutory procedure. This includes:
- Valuation of structures and trees
- 100% solatium (additional compensation)
- 25% incentive on final valuation
This dual-track approach ensures land acquisition progresses smoothly while offering landowners fair market-aligned returns.
Villagers Continue to Protest Compensation
Despite the government’s offer, resistance remains. The Parandur Airport Protest Committee argues that land values have soared to ₹2–3 crore per acre due to project announcements, making the government’s offer appear insufficient.
Committee leader G. Subramanian told the press: “We are not ready to accept the current offer. It is far below the actual value of our lands.”
A Balancing Act Between Infrastructure and Community
The Parandur airport, once completed, is expected to decongest Chennai International Airport and enhance regional connectivity. But to move forward, the state must balance rapid infrastructure development with equitable treatment of affected communities.