Tamil Nadu Speeds Up Plans for Hosur International Airport:

Suspense crime, Digital Desk : Stalin Meets Prem Watsa and Marar to Discuss the Hosur Airport Project Alongside BIAL’s Expansion Opportunities

Around the latter part of April, Tamil Nadu Chief Minister MK Stalin held a meeting with the CEO and Founder of Fairfax Financial Holdings, Prem Watsa, alongside the CEO of Bangalore International Airport Limited (BIAL), Hari Marar to discuss the Hosur airport project. The meeting was also attended by Palanivel Thiaga Rajan, Minister for IT and Digital Services and other senior officials from the Tamil Nadu Industrial Development Corporation (TIDCO).

Expectation Around the Outcome of the Meeting
As per the available intel, the meeting seems to have produced positive results. Both parties came to an understanding that this project will be of value to both sides and will therefore be carried out, with Fairfax acquiring an interest in the further development of its airport services and the government of Tamil Nadu willing to accelerate the progress in constraining the Hosur project.

BIAL’s Concession and Required Permits
BIAL, who has spent the last decade operating the KIA have holds a concession agreement with the Union Ministry of Civil Aviation. This agreement highlights that no new airport facilities should be built in a 150 Kilometer radius around KIA until May 2033. This puts a significant limitation on the development of the Hosur airport which is situated in Tamil Nadu. Therefore, it is necessary for the Tamil Nadu government to acquire permission from BIAL for further progress to be made.. However, the backing of Fairfax with KIA puts a stronger mark on these negotiations.

Hosur Airport Project Details

The new international airport at Hosur will be developed by the Tamil Nadu government to serve 30 million passengers annually. Chief Minister Stalin announced the development plan in June 2024. The airplane-related infrastructure will cover more than 2000 acres.

Fairfax’s Stake and Government Involvement

Fairfax and its subsidiaries own 74 percent of BIAL through Anchorage Infrastructure Investments Holdings Limited (43.64%) and FIH Mauritius Investments Ltd (30.36%). KSIDC and Airports Authority of India hold the remaining 26 percent of the shares.

Support from the Central Government

The Union Civil Aviation Minister K Rammohan Naidu from the ruling party has already endorsed the Tamil Nadu airport initiatives, telling BIAL two days ago on the floor of the Rajya Sabha that they expect active engagement on the matter. However, he remarked earlier that the BIAL concession agreement will make matters easier said than done. They do need, however, to get moving on the BIAL- Government of India- Government of Tamil Nadu agreement, Naidu clarified.

Site Analysis And Predictions For The Future

The Airports Authority of India (AAI) surveyed five sites around Hosur last year. According to the survey results, Tamilnadu earmarked two sites: one south of TAAL (Taneja Aerospace and Aviation Limited) and the other east of Hosur, close to Shoolagiri. Likewise, there are plans in Karnataka for a second airport to be built for Bengaluru and sites along Kanakapura Road and Nelamangala-Kunigal Road have been to before. Reports suggest that BIAL is also interested in the new airport project in Bengaluru.