Mumbai, Dec 23 (PTI) Maharashtra Chief Minister Devendra Fadnavis on Tuesday said the proposed airport at Purandar would increase the GDP of Pune region by about 2 percent by encouraging industry and trade expansion.

Interacting with representatives of seven villages in Pune district which will be affected by the project, he said several industries were keen to invest in the region, and the new airport would not only facilitate passenger traffic but also function as a cargo hub, especially helping the trade of perishable goods.

Citing the newly constructed Navi Mumbai airport, he said airports create major opportunities for agriculture, industry and trade in surrounding areas, and assured that farmers in Purandar would ultimately benefit.

The government would consider offering the highest possible compensation for land acquired for the airport project, and the rate of compensation would be finalised through negotiations rather than as per the ready reckoner, said the chief minister.

"All benefits related to TDR (transferable development rights) will be provided under the Purandar aerocity project. The children of project-affected farmers will be given 100 per cent priority in jobs, and a skill development centre will be set up for the local youth once land rates are finalised," Fadnavis said.

Cases registered during earlier agitations against the project would be withdrawn, the CM assured.

Rehabilitation of farmers and other residents affected by the project would get the highest priority, he said, adding, "We are considering compensation higher than the original land value to ensure long-term security of farmers and their future generations." Benefits could exceed those offered for earlier projects such as CIDCO projects, the chief minister said.

Rehabilitation would be carried out by keeping family structures in mind, including provision of additional space for adult children, while solutions would also be worked out for the shares of sisters, small landholders and landless farmers, he said, adding that the Purandar airport would be the first project in the state to offer both monetary compensation and alternative land to project-affected persons.

A grand statue of Chhatrapati Sambhaji Maharaj, the second ruler of the 17th century Maratha state, would be erected in the airport area, he announced.

The government was also considering making the affected farmers stakeholders in the project, and a proposal to set up a separate corporation for all project-affected persons in the state was also being discussed, Fadnavis said. PTI MR KRK