The Maharashtra Government will pay Rs 82 crore to the Airport Authority of India (AAI) for expansion of the Kolhapur airport, it has said.
A government resolution (GR) issued two days ago said the AAI had demanded that the state share 25 to 30 per cent of the cost of the expansion work. The work is estimated to cost Rs 274 crore.
The state would be paying Rs 82 crore to the AAI, the GR said.
The Kolhapur airport was leased to the Maharashtra Industrial Development Corporation in 1997. After the lease expired in 2013, it was handed over to the AAI.
The state government recently named the airport as Chhatrapati Shahu Maharaj Airport.
The state government has also approved Rs 26 crore for expansion of the Ratnagiri airport under the Centre's regional connectivity scheme, 'Udaan'.
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Maharashtra Airport Development Corporation (MADC) had sought approval for acquiring 33.81 hectares of land for the expansion, and a grant of Rs 26 crore for the same purpose.
The funds will be used for land acquisition, for construction of a parallel taxiway and the terminal building, and for operations and maintenance.
The airport in this coastal town is under the control of the Indian Coast Guard and has a 1,372-metre long runway.
The Coast Guard has demanded that the runway be expanded to 2,135 meters.
It had sought to acquire 25 hectares of land from nearby Mirjole village for the expansion, so that Bombardier/ATR 72 type planes could land and take off, and the airport could be used for civilian traffic.