The AAI has agreed to develop the airport to serve as a regional air traffic hub catering to the industrial and mining demands of these areas, Chief Secretary J K Mohapatra said after the state cabinet approved a proposal in this regard.
For Phase-I of the proposed airport, the project cost was likely to be Rs 210 crore, Mohapatra said adding that the state government would take a burden of Rs 75 crore.
The state government would hand over 296 acres of land in Jharsuguda tehsil for developing Phase I and II of the airport where facilities would be set up for operation of A-320 type of aircraft initially.
In future, B-767 type of planes could operate from there depending on the traffic, the official said adding the project will be completed in two years.
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