Hosur Airport: A Blessing Or Curse For Bengaluru's IT Sector?

Tamil Nadu Chief Minister MK Stalin's recent announcement to establish international airport in Hosur has ignited discussions about its potential implications. Just days before this announcement, Karnataka's Infrastructure Development Minister M.B Patil had initiated a study on the development of a proposed second airport within Bengaluru.

Hosur, located just 40 km from the Electronic City of Bengaluru, is home to several electronic/IT industrial parks. Its strategic location near East and South Bangalore makes it a convenient hub for local businesses.

Impact on Industrial Development

Industrialists argue that the development of the Hosur airport, compared to the Kempegowda International Airport (KIA) in north Bengaluru, will provide easier access for companies in Bengaluru's Electronic City, Mahadevapura, and other areas in south and east Bengaluru. However, it is also expected to impact the overall business environment of Bengaluru, according to reports.

"It is good to develop Hosur Airport. This airport will bring more benefits to businesses located in Electronic City, Mahadevapura, and other districts of South and East Bengaluru compared to Kempegowda International Airport in North Bengaluru. The impact on the commercial activity of Bangalore cannot be denied. But the Hosur airport will not harm Karnataka's business interests," said Ramesh Chandra Lahoti, senior vice-president of the Confederation of Karnataka Chamber of Commerce and Industry (FKCCI).

On the other hand, there are concerns that if Tamil Nadu establishes an airport in Hosur, many industries might migrate from Bengaluru to Tamil Nadu. The proximity of Hosur to Bengaluru could lead to a shift of multinational companies (MNCs) from Karnataka, given Tamil Nadu's competitive edge. Bengaluru, now a globally renowned city in the healthcare and IT sectors, could see its prestige affected if the Hosur airport becomes operational, according to reports.

Benefits for Bengaluru

Despite these concerns, having an airport in Hosur could also benefit Bengaluru. It would provide convenient access for businessmen and employees traveling to and from Electronic City and surrounding areas, where many IT companies are based.

The Need for a Second Airport

The primary hurdle facing the planned Hosur airport stems from a concession agreement between Bangalore International Airport Limited (BIAL) and the Union Ministry of Civil Aviation, dating back to July 5, 2004. This agreement prohibits the development of new airports within a 150 km radius of Kempegowda International Airport until its 25th anniversary in May 2033. Hosur is located within this restricted radius, despite Kempegowda International Airport commencing operations on May 24, 2008.

KIA is expected to reach its maximum passenger handling capacity by 2033, which could cause air travel problems in Bangalore. This concern has prompted both the state government and BIAL to prioritize the development of a second airport to accommodate the growing air passenger traffic.

BIAL is looking to complete Phase 2 of Terminal 2 and build Terminal 3, while the Karnataka government is seeking land for a second airport. BIAL has expressed interest in bidding for the management of this new airport if the government issues tenders in the near future.

Concerns Over Delays

Some are worried about the Hosur airport announcement. Bengaluru South MP Tejasvi Surya emphasized that Karnataka should prioritize developing a second airport in Bengaluru. He suggested that there are favorable locations near Anekal or Bidadi for this purpose. "Currently, the neighboring state is planning a new airport. We need to speed up our efforts to establish a second airport. Bangalore has already lost a significant portion of its manufacturing units to Tamil Nadu," he said.

Karnataka IT-BT minister Priyank Kharge mentioned that the Hosur International Airport will benefit its surrounding areas only if there is good connectivity and acknowledged the tough challenges in terms of business investments. BIAL has not yet commented on the Hosur International Airport proposal.