Hosur International Airport: A Boon or Bane for Bengaluru's Business Landscape?

The announcement by Tamil Nadu Chief Minister M K Stalin regarding the construction of a new international airport in Hosur has ignited discussions on its potential impact on Bengaluru. Just days before Stalin's declaration, Karnataka's Infrastructure Development Minister M B Patil initiated a pre-feasibility study for a proposed second airport within Bengaluru.

Hosur, located just 40 km across the border from Bengaluru's Electronic City, home to IT and electrical industrial parks, is seen as strategically advantageous for local businesses due to its proximity to east and south Bengaluru. 

How will It Affect Industrial Development?

Industrialists believe that the development of Hosur Airport will facilitate easier access for companies based in Bengaluru Electronic City, Mahadevapura, and other areas of south and east Bengaluru compared to the Kempegowda International Airport in north Bengaluru. However, they do not foresee this impacting Bengaluru's overall business environment significantly.

"It is unquestionably a good idea to develop Hosur Airport. This airport will be more accessible for businesses situated in Electronic City, Mahadevapura, and other districts of south and east Bengaluru compared to the Kempegowda International Airport in north Bengaluru. However, I don’t believe this will impact Bengaluru’s commercial landscape. The Hosur airport does not threaten Karnataka's business interests," said Ramesh Chandra Lahoti, Senior Vice-President of the Federation of Karnataka Chambers of Commerce and Industry (FKCCI). "Kempegowda International Airport will continue to be in demand for both passengers and industrialists, especially with the government planning another airport for the city."

Why is this Airport Necessary?

The concessional agreement between Bangalore International Airport Limited (BIAL) and the civil aviation ministry stipulates that no new or existing airport can be developed, improved, or upgraded into an international airport within a 150 km radius of the current airport before its 25th anniversary. Kempegowda International Airport (KIA) will celebrate its 25th anniversary in 2033.

However, it is anticipated that KIA will reach its maximum passenger handling capacity by 2033, potentially causing air travel issues in Bengaluru. This concern drives both the state government and BIAL to prioritize the development of a second airport to accommodate the increasing air passenger traffic. While BIAL is advancing towards completing Phase 2 of Terminal 2 and constructing Terminal 3, the government is actively seeking land for the second airport. BIAL has also shown interest in bidding for the management of this new airport if the government issues tenders in the near future.

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Hosur International Airport: Boon or Bane?

However, some politicians have expressed concerns regarding the announcement of the Hosur airport. Bangalore South MP Tejasvi Surya underscored this issue, stating, "I have stressed this before—Karnataka must prioritize developing a second airport in Bengaluru, ideally near Anekal or Bidadi, as these locations offer both geographical and strategic advantages for the city. This would also provide easier access for residents of south and east Bengaluru, who currently have to travel to Devanahalli. With the neighboring state planning a new airport, Karnataka must act quickly to avoid falling behind. We need to expedite our efforts to establish the second airport," he further remarked. "Bengaluru has already lost a considerable portion of its manufacturing units to Tamil Nadu. The government should proactively initiate measures to launch the new airport for Bengaluru."

"The Hosur International Airport will only be beneficial to its surrounding areas if there is good connectivity to the airport," stated Priyank Kharge, Minister for IT-BT. "However, in terms of business investments, I anticipate stiff competition in the region."

Satya Arikutharam, an independent mobility expert, added, "The development of Hosur airport will undoubtedly attract existing and new business enterprises to relocate closer to the airport. Nonetheless, for an international airport to thrive, it needs excellent connectivity and a well-segmented range of international airlines."

Meanwhile, Bangalore International Airport Limited (BIAL) declined to comment on the proposed Hosur International Airport.

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