"The Union Cabinet today approved the proposal of the Defence Ministry for mutual exchange of 2.50 acres of land between the Administration of Union Territory of Chandigarh and the IAF for expansion of civil terminal at the Chandigarh airport," an official release said here.
It said the Airports Authority of India (AAI) has plans of expanding the Chandigarh airport to help augment air services from there.
"However, as the AAI does not have land to provide to the IAF which is required for any transfer of defence land, the UT administration transferred an equal value of land at Sector 31-D of Chandigarh to the IAF," the release said.
The mutual transfer of land between the two sides is on a permanent basis.