The proposed airport will be spread over 2,400 hectares and the site has been already approved by the Airports Authority of India (AAI), Maharashtra Chief Minister Devendra Fadnavis told reporters in Mumbai on Thursday.
Mr Fadnavis held a meeting with Maharashtra Airport Development Corporation (MADC) on the issue.
"We decided to grant permissions for carrying out DPR as well as Obstacle Limitation Surface survey for the proposed site," the Chief Minister added.
"Located near historic fort Purandar - the proposed airport would named as Chhatrapati Sambhajiraje International Airport", Mr Fadnavis said, adding post acquisition of land, the airport will commence within three years.
"The site is around 15-20 km away from Pune city. Located on the south of the city, the proposed airport will be connected with six different routes including National Highway 4 and 17", he said.
According to the Chief Minister, there will be a special ring-road connecting major industrial establishments with the proposed airport from Hadapsar area of Pune.
The IT and auto sectors were demanding a dedicated international airport with cargo facility for over a decade.
When asked about earlier proposed sites like Chakan and Rajgurunagar, Mr Fadnavis said except Purandar no other site is approved by AAI.
"Most of the farmers have expressed their willingness for the project. The farmers, whose land will be acquired for the project, will become partner in the airport developing company which will ensure some steady income source for them. This model has been used in the state earlier for land acquisition of (proposed) Navi Mumbai International Airport", the Chief Minister added.
Officials said Purandar is an arid region with very low rainfall and most of the land is non-agricultural while in some areas farmers opt for kharif crops only.