Hosur’s wait for airport might get longer

It is learnt that BIAL is not keen on allowing flight operations from Hosur, around 90 km from Bengaluru airport & cites the concessionaire agreement signed with Centre

This industrial city’s wait for an airport might get longer with the Tamil Nadu government pre-closing a study on demand assessment, and air traffic forecasting for setting up the facility, with the concessionaire agreement between the Union Government and Bengaluru International Airport Limited (BIAL) coming in the way.

The agreement signed between the two parties that no airport should be constructed within 150 km of the Kempegowda International Airport in Bengaluru till 2033 has also forced the Union Government to take Hosur off the list of airports under the UDAN scheme. The two developments raise a question mark over the efforts to launch flight operations from a private airport owned by Taneja Aerospace and Aviation Limited (TAAI), located 14 km from Hosur and 47 km from Bengaluru.

The Centre had in 2022 told Parliament that the BIAL may consider a one-time concession for the purpose of the Regional Connectivity Scheme (RCS) subject to parties entering into an agreement with specific conditions for air operations from Hosur. However, in February, the Centre said Hosur has been taken off the UDAN scheme citing the agreement that it signed with BIAL. Efforts to reach BIAL and TAAI for comment didn’t fructify.

It is learnt that BIAL is not keen on allowing flight operations from Hosur, around 90 km from the Bengaluru airport, and cites the concessionaire agreement signed with the Centre. However, sources in the state government told DH that the negotiations with BIAL and TAAI are still on, but no headway has been made so far.

“The airport is owned by Taneja group and BIAL has to agree to launch air operations from Hosur. Our role is very limited in this case because an agreement has to be reached between the two parties. We are still trying to see how we can sort this out. The efforts might take more time,” a source in the know told DH.

Industrialists have been demanding an exclusive airport for Hosur, which is home to top business houses like Ashok Leyland, TVS Motor Company, and Titan, asking the governments not to just look at the passenger traffic but also the huge potential freight traffic from the city which is now emerging as an Electric Vehicle (EV) hub.

Heeding the demand, the Tamil Nadu Industrial Development Corporation (TIDCO) had in 2021 floated a tender seeking a consultant to identify at least three potential sites for setting up the airport, analyse air traffic growth trends in the past decade in nearby airports, and forecast future traffic for the next 30 years.

“The study was pre-closed in 2022 as there was no point in conducting it when the concessionaire agreement was clear. We are not aware why the Union Government didn’t renew the Hosur route under UDAN. The services can launch if BIAL and TAAI come to an agreement,” another source added.