Airports in Tier-II cities are not financially viable after end of UDAN scheme: Karnataka Minister M.B. Patil

Airports in Tier-II cities and district headquarters have proved to be not financially viable after the end of the UDAN scheme, Industry and Infrastructure Development Minister M. B. Patil said in the Legislative Assembly on Friday.

Replying to a question by BJP member G. Janardhana Reddy, Mr. Patil said airports in Tier-II cities such as Kalaburagi, Bidar and Shivamogga are not financially sustainable after the completion of the three-year incentive period under the scheme, which provides concessional airfares to passengers.

Across country

Noting that several airports located in district and divisional headquarters across the country are facing similar financial challenges, he said the airport at Bidar is currently operating with financial support from the Kalyana Karnataka Region Development Board (KKRDB). There has also been a demand to resume operations at the Kalaburagi airport with similar support from the Board, he added.

To improve the viability of district airports, Mr. Patil said he had proposed to the Union Civil Aviation Minister that the UDAN scheme be extended from three years to five years. For the subsequent five years, the Centre and the State governments could jointly support operations in a 50:50 ratio, he suggested.

He also said the State government is planning to introduce an aviation policy — on the lines of those adopted by Madhya Pradesh and Uttar Pradesh — to develop airports in Tier-II cities and make them financially viable.

Ballari airport proposal

The government intends to establish an airport in Ballari to serve the regions of Vijayanagara and Koppal districts as well as neighbouring areas of Andhra Pradesh.

The airport project was first proposed in Ballari in 2010, but no groundwork commenced after the private firm associated with the project withdrew. In 2022, the previous BJP government decided to take up the project with State funding. However, no consensus has been reached regarding the 900 acres acquired nearly 15 years ago for the project.

Mr. Patil said the Karnataka Industrial Areas Development Board (KIADB) has now identified two alternative sites in Ballari district measuring about 800 acres and 1,200 acres for the proposed project.

Meeting with CM

He said a meeting of public representatives from Ballari, Vijayanagara and Koppal districts will soon be convened under the chairmanship of the Chief Minister to discuss the merits and challenges of the project.

However, the suitability of the proposed site will have to be assessed by the Airports Authority of India before a final decision is taken.

Lessons from past

Mr. Patil said airports must be planned with long-term foresight to avoid repeating the mistakes seen in places such as Hubballi, Belagavi and Vijayapura.

He pointed out that the distance between Hubballi and Belagavi airports is only about 70 km. If an airport had been built at a location between the two cities, it might have qualified as an internal airport based on passenger traffic, he said.

The Minister added that constructing the airport at the previously identified site in Ballari would require building an 8-lane greenfield highway and resolving several other logistical issues. Land acquisition and compensation alone would cost nearly as much as the airport project itself, making the option impractical.

Mr. Reddy, however, argued that the site identified in 2010 was suitable as it would benefit the large number of tourists visiting the UNESCO World Heritage site of Hampi and the Anjanadri Hills temple, believed to be the birthplace of Lord Hanuman.