Maharashtra Council Passes Bill Raising MIDC Borrowing Limit To ₹6,000 Crore For Purandar Airport Land Acquisition

Mumbai: The Maharashtra Legislative Council on Tuesday passed the Maharashtra Industrial Development (Amendment) Bill, 2026, paving the way for the Maharashtra Industrial Development Corporation (MIDC) to substantially enhance its borrowing capacity to fund land acquisition for the proposed Purandar Airport project.

Bill clears borrowing expansion

Introducing the Bill in the House, Industries Minister Shambhuraj Desai said the amendment was essential to meet the project's financial requirements.

Under the existing provisions of the Maharashtra Industrial Development Corporation Act, the MIDC's borrowing limit from external sources is capped at ₹75 crore, an amount he said was inadequate for acquiring land for the airport.

The amendment raises the borrowing limit from ₹75 crore to ₹6,000 crore, enabling the Corporation to mobilise sufficient funds. Desai clarified that the enhanced borrowing would be used exclusively to pay compensation for land acquired for the Purandar Airport project.

Land acquisition progress

The minister informed the House that around 85 per cent of the land required for the project had already been acquired through mutual consent.

Efforts were continuing to acquire the remaining land through dialogue with farmers and consensus-based negotiations, he added.

Responding to concerns raised during the debate, Desai said the Purandar site had been selected on the basis of technical recommendations and a feasibility report prepared by the Airports Authority of India.

He reiterated the State Government's commitment to protecting farmers' interests by ensuring a transparent and consent-based land acquisition process.

Project viability and approval

Desai also said the amendment had been drafted after a comprehensive assessment of the MIDC's financial strength, debt-servicing capacity and the overall financial viability of the project.

He described the legislation as crucial to ensuring the timely execution of the Purandar Airport project, which he said was of strategic importance to Maharashtra.

Assuring members that their suggestions would be taken into consideration, the minister appealed for the Bill's passage, following which it was approved by the Legislative Council.

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