Chennai T3 Terminal delayed AAI issues show cause notice to contractor with June 2026 deadline

Noor Mohmmed

    19/Sep/2025

  • Airports Authority of India has issued a show cause notice to the contractor for delays in Chennai T3 Terminal construction

  • The project, which began in 2018, aims to build an integrated international terminal in two parts at Rs 2,467 crore

  • AAI has set June 2026 as the final completion deadline after the contractor missed multiple earlier deadlines

The Airports Authority of India (AAI) has issued a show cause notice to the contractor responsible for the construction of Chennai’s T3 Terminal, citing repeated delays in project execution. The move comes as the project, which commenced in 2018, has already missed multiple deadlines set for different phases of the construction. The T3 Terminal project is aimed at building an integrated international terminal in two parts, with an estimated project cost of Rs. 2,467 crore.

The AAI has now fixed June 2026 as the final completion deadline for the terminal. The T3 Terminal is expected to significantly enhance the capacity and infrastructure of Chennai International Airport, accommodating increasing passenger traffic and improving operational efficiency. The integrated terminal will feature advanced facilities including modern lounges, check-in counters, baggage handling systems, and international amenities to cater to domestic and international travelers.

According to sources, the delays in construction have impacted the project’s timeline due to a combination of factors including logistical challenges, contractor management issues, and unforeseen technical complexities. The AAI’s issuance of a show cause notice reflects its intent to ensure accountability and enforce contractual obligations, emphasizing the critical nature of timely project completion for India’s growing aviation sector.

The T3 Terminal project, part of the broader modernisation plan of Chennai International Airport, was envisioned to expand passenger handling capacity and streamline airport operations. Once completed, the terminal will connect seamlessly with existing airport facilities, enhancing passenger experience while supporting India’s vision of becoming a global aviation hub.

The contractor has been given the opportunity to respond to the show cause notice, detailing the reasons for delays and measures proposed to meet the June 2026 deadline. AAI officials have stressed that failure to adhere to the final timeline may result in penalties or termination of the contract, as per the terms agreed upon in the construction agreement.

Experts in airport infrastructure note that timely execution of the T3 Terminal is critical not just for operational efficiency but also for regional connectivity and economic growth. The project represents a strategic investment in India’s aviation sector, aiming to enhance both domestic and international air travel capabilities.

The Chennai T3 Terminal will be a state-of-the-art facility with features such as advanced security screening, automated baggage handling, improved check-in systems, and passenger-friendly lounges. This development is expected to reduce congestion at the existing terminals, improve service quality, and attract increased international traffic.

With the final deadline set for June 2026, the Airports Authority of India has reaffirmed its commitment to monitor progress closely and hold the contractor accountable. Completion of the T3 Terminal is expected to bolster Chennai’s position as a major aviation hub in South India, providing a world-class airport experience for travelers.

The project is also being closely watched by aviation industry stakeholders, government authorities, and local businesses, as timely completion will support regional economic activity, tourism, and employment generation. The AAI has reiterated that all necessary measures will be taken to ensure the project remains on track, including potential legal action if the contractor fails to comply.

In conclusion, the Chennai T3 Terminal project represents a significant milestone for India’s aviation infrastructure. The issuance of the show cause notice underscores the AAI’s proactive approach to addressing delays and ensuring that the terminal is ready by June 2026. This development is expected to have long-term benefits for passengers, airlines, and the broader economy, solidifying Chennai’s role in India’s expanding aviation network.


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