Odisha's Puri airport project gets stage-I forest clearance from Centre

MoEFCC grants in-principle approval for forest land diversion for Puri airport, subject to afforestation, wildlife safeguards and pending CRZ clearance requirements

The long-pending proposal for an international airport at Puri received a significant push on Saturday, with the Centre granting stage-I (in-principle) clearance to divert the forest land required for the greenfield project.

 

In an official communication that has been seen by Business Standard, the Ministry of Environment, Forest and Climate Change (MoEFCC) has conveyed to the Odisha government that in-principle approval under the provisions of the Forest (Conservation) Act, 1980, has been accorded for diversion of 27.887 hectares (ha) of forest land under Puri forest division for construction of the proposed Shree Jagannath International Airport.

 

The approval was granted after a detailed examination of the Odisha government’s proposal by the Centre’s Advisory Committee, which met on February 27, 2026, and conditionally recommended the project.

   

The approval is subject to compliance with an extensive set of safeguards before stage-II or final clearance is granted. The ministry has mandated compensatory afforestation over 29.939 ha of non-forest land in Kakatpur tehsil, along with additional afforestation over 59.52 ha of degraded forest land, both to be undertaken at the project cost.

 

“The non-forest land shall be transferred and mutated in favour of the state Forest department, or shall be notified by the state government as protected forest under Section 29 of the Indian Forest Act, 1927, or under the relevant section(s) of the local Forest Act, before handing over the forest land to the user agency,” read the letter to the state’s principal secretary of the Forest department.

 

The user agency will also have to deposit the net present value (NPV) of the diverted forest land as per Supreme Court guidelines and ensure that the legal status of the forest land remains unchanged. Strict restrictions have been imposed on tree felling, with directions to explore translocation of trees wherever feasible and to undertake felling only under the supervision of the state Forest department.

 

The MoEFCC has stipulated that no labour camps can be set up within the forest land and that alternative fuel arrangements must be provided to prevent pressure on adjoining forest areas. Biodiversity protection measures, including the creation of artificial nesting habitats for avifauna, have also been emphasised.

What conditions must be met before final clearance?

Besides, the state government has been asked to ensure proper implementation of mitigation measures based on site-specific wildlife management plans prepared in consultation with institutions such as the Wildlife Institute of India and the Zoological Survey of India. The ministry has made it clear that the forest land cannot be handed over or used until final approval is granted and that any violation of conditions will invite action under the law.

 

“The layout plan of the proposal shall not be changed without the prior approval of the Central Government and the forest land shall not be used for any purpose other than that specified in the proposal. The forest land proposed to be diverted shall under no circumstances be transferred to any other agency, department or person without prior approval of the Central government,” it added.

Why did the project face environmental scrutiny earlier?

The project had earlier faced scrutiny from the Forest Advisory Committee (FAC), which in December 2024 raised concerns over the ecological sensitivity of the region and sought detailed studies on the habitat and migratory routes of Olive Ridley turtles and Irrawaddy dolphins. It had also stressed the need to obtain Coastal Regulation Zone (CRZ) clearance prior to forest clearance, making it another critical requirement that remains pending.

What is the scale and economic impact of the project?

The proposed airport, to be developed at an estimated cost of ₹5,631 crore in three phases, is expected to handle around 4.6 million passengers annually upon completion. The first phase, pegged at about ₹2,200 crore, had earlier drawn interest from private players such as Fairfax, Adani, and GMR Group under a public-private partnership model. The Industrial Infrastructure Development Corporation (Idco) had floated tenders for the initial phase in February 2024.

 

Once operational, the airport is expected to significantly enhance connectivity to Puri, a major pilgrimage and tourism hub, and provide a boost to the state’s economy through increased tourist inflow, investment, and job creation. Officials indicated that timely compliance with the stipulated conditions will be crucial for securing final approval and initiating construction, as the project moves a step closer to reality after years of deliberation.