The memorandum of understanding was signed between AAI chairman Alok Sinha and special secretary, general administration department, Nitin Chandra in the presence of Chief Minister Naveen Patnaik and other senior officials.

The project is estimated to cost Rs 210 crore of which state will provide Rs 75 crore, a senior official of the office of the chief minister said. The state government will provide 296.50 acres of land, 118.75 acres immediately to the AAI free of cost for the development of the airport, he added.

The airport would be developed within two years from the date the AAI gets the physical possession of land. Jharsuguda, about 380 kms from here, is an industrial hub.

The state has only one airport at present that is the Biju Patnaik International Airport here. The Jharsuguda airport will provide air connectivity to north and western Odisha.

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