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

Minister of Industry and Infrastructure Development MB Patil said in the Legislative Assembly on Friday that II. He said airports in tier cities and district headquarters have proven to be financially unviable after the end of the UDAN scheme.

Replying to a question from BJP member G. Janardhana Reddy, Mr. Patil said that he is a member of World War II schools like Kalaburagi, Bidar and Shivamogga. He said airports in tier-1 cities were not financially sustainable after completion of the three-year incentive period under the scheme that provides discounted air tickets to passengers.

nationwide

Noting that many airports located in district and divisional headquarters across the country are facing similar financial challenges, he said the airport in Bidar is currently running with the financial support of the Kalyana Karnataka District Development Board (KKRDB). He also added that there was a demand to restart operations at Kalaburagi airport with similar support from the Board.

Mr. Patil said he had suggested to the Union Civil Aviation Minister that the UDAN scheme be extended from three to five years to improve the viability of regional airports. He suggested that for the next five years, the Center and State governments could jointly support operations in a 50:50 ratio.

He also said that the State government plans to implement an aviation policy similar to those adopted by Madhya Pradesh and Uttar Pradesh to develop airports in Tier-II cities and make them financially viable.

Ballari airport recommendation

The government plans to set up an airport in Ballari that will serve the Vijayanagara and Koppal districts as well as neighboring parts of Andhra Pradesh.

The airport project was first proposed in Ballari in 2010, but no groundwork was initiated after the private firm associated with the project withdrew. In 2022, the previous BJP government decided to undertake the project with State funding. However, a consensus has not yet been reached regarding the 900 decare area purchased for the project approximately 15 years ago.

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

meeting with CM

He said a meeting of public representatives from Ballari, Vijayanagara and Koppal districts will be held soon under the chairmanship of the Chief Minister to discuss the benefits 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 learned from the past

Mr. Patil said airports should be planned with long-term projections to avoid repeating the mistakes seen in places like Hubballi, Belagavi and Vijayapura.

He pointed out that the distance between Hubballi and Belagavi airports is only around 70 km. He said that if an airport were built between the two cities, it could have the characteristics of a domestic airport according to passenger traffic.

The minister added that building the airport in the previously identified area in Ballari would require construction of an 8-lane greenfield highway and solving some other logistical issues. Land acquisition and compensation alone would cost almost as much as the airport project, making the option unviable.

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