MIDC to finalise financial lender in 10 days for Purandar airport land acquisition

Pune: Maharashtra Industrial Development Corporation (MIDC) officials on Monday said the agency would finalise a financial institution within the next 10 days to raise funds for land acquisition of the proposed Purandar airport.In a govt resolution (GR) issued, the industries department granted approval and state guarantee to MIDC to raise Rs6,000 crore — for acquiring 3,000 acre land from seven villages in Purandar taluka — from the housing and urban development corporation or any other financial institution at competitive rates.Officials said the district administration has already submitted a proposal to finalise land rates. "We will begin discussions with villagers and acquire land once the funds are allocated. The district administration had earlier obtained villagers' consent to sell their land," they said. District officials said over 90% farmers involved had agreed. Recently, CM Devendra Fadnavis mentioned a special project vehicle for the Purandar airport during the state budget and said the administration would acquire land for the airport. Last week, the state govt cleared a Rs6,000 crore loan for acquisition, while attaching strict financial conditions.Meanwhile, the GR mandated that MIDC comply with fiscal responsibility and budget management norms to ensure financial discipline and prudent debt management. The state guarantee would be subject to the compliance. The loan must be used strictly for land acquisition and related works to be completed within the stipulated timeframe. It said the MIDC would have to submit regular monthly or half-yearly reports to the state on repayment and financial status. The GR directed that the loan agreement clearly specify repayment terms, penal interest clauses for delays and provisions for refinancing at lower rates or a one-time settlement, if permitted.