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As Tamil Nadu fast-tracks its plan to set up an international airport near Hosur, close to the Karnataka border, Chief Minister MK Stalin on April 28 met Prem Watsa, Founder and CEO of Fairfax Financial Holdings — the major stakeholder in Bengaluru’s airport (74 percent) — along with Bangalore International Airport Ltd (BIAL) CEO Hari Marar.

BIAL, which has been operating Kempegowda International Airport (KIA) since 2008, is now the third-busiest airport in the country.

Also, read: Tamil Nadu govt dials Fairfax-backed Bangalore International Airport to set up Hosur airport

Stalin also posted pictures of the meeting with Watsa and Marar, held in the presence of TN’s Minister for Information Technology and Digital Services Palanivel Thiaga Rajan and Tamil Nadu Industrial Development Corporation (TIDCO) officials.

Moneycontrol was the first to report, in June 2024, that the Tamil Nadu government had approached Fairfax-backed BIAL for setting up the proposed airport at Hosur.

“The meeting was positive. This is a win-win situation — Fairfax is looking for expansion and the government wants to expedite the Hosur airport project,” a source said.

BIAL has a concession agreement with the Union Ministry of Civil Aviation, signed on July 5, 2004, which restricts the development of any new airport within a 150 km radius of KIA until the airport’s 25th anniversary in May 2033.

“Since Hosur falls within this radius, we need BIAL’s consent to commence operations. Fairfax has already proven its expertise by successfully operating KIA,” the source added.

Also, read: Tamil Nadu CM Stalin announces international airport in Hosur

In June 2024, Chief Minister Stalin announced in the TN assembly that the government planned to build an international airport at Hosur, with a projected capacity of 30 million passengers annually. The proposed airport will be spread across 2,000 acres.

Watsa’s Fairfax Group collectively own 74% of BIAL — Anchorage Infrastructure Investments Holdings Limited (43.64%) and FIH Mauritius Investments Ltd (30.36%) — while the Karnataka State Industrial and Infrastructure Development Corporation Limited (KSIIDC) and the Airports Authority of India (AAI) each hold 13%, making up the remaining 26%.

In the Rajya Sabha, K Rammohan Naidu, Union minister for Civil Aviation, recently assured that the Centre would adopt a ‘positive’ approach towards TN’s proposal to set up the new airport at Hosur. However, he acknowledged that the existing concession agreement with BIAL made it “a challenging and tricky situation.”

Also, read: Airport at Tamil Nadu's Hosur to benefit Bengaluru's tech hub Electronics City and nearby areas

He said that BIAL, the Government of India, and the Tamil Nadu government must arrive at a consensus, adding that the Centre remains committed to facilitating the development of as many airports as possible.

Last year, the Airports Authority of India (AAI) surveyed five potential sites around Hosur. Based on the AAI’s report, the TN government shortlisted two locations: one south of Taneja Aerospace and Aviation Limited (TAAL) in Hosur taluk, and another east of Hosur, north of Shoolagiri. Meanwhile, the Karnataka government is also finalising plans for a second airport for Bengaluru. AAI officials have inspected two sites along Kanakapura Road and one along the Nelamangala–Kunigal Road. Sources said that BIAL is keen to be involved in the development of Bengaluru’s second airport as well.

Also, read: Bengaluru’s second airport: Central team to inspect three shortlisted sites on April 8

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