Chennai, Feb 16 (.) The Tamil Nadu government has suffered a setback in its plans to establish an airport in Hosur as the Ministry of Defence has denied airspace clearance, notes the state’s Economic Survey 2025-26.
According to the survey released here on Monday ahead of the state’s interim budget, the Defence Ministry has denied airspace clearance for the airport in Hosur citing operational requirements of Hindustan Aeronautics Limited, which controls the region’s airspace.
“The State had earlier sought relaxation in June last year and later submitted a detailed technical justification in November, but the request was rejected without discussions,” the survey said.
Meanwhile, the Ministry of Civil Aviation has sought an impact study to assess whether the proposed airport would affect passenger traffic at Bengaluru or Salem airports. The study is to be conducted by Tamil Nadu Industrial Development Corporation Ltd (TIDCO).
According to the survey, based purely on connectivity gaps and economic geography, priority should be given to developing new airports in the east coast delta region (Nagapattinam-MayiladuthuraiKaraikal) and the far south-west belt (Tenkasi-Sankarankovil-Western Ghats edge).
While these regions may not generate immediate international traffic, they present strong potential for regional airports to support balanced development and improve accessibility.
The survey said the Bengaluru Airport continues to exceed Chennai International Airport’s international passenger traffic in South India, handling 694,550 passengers in December 2025.
Meanwhile the survey said, to support airport expansion and modernisation, land valued at Rs. 2,938 crore has been acquired and handed over to the Airports Authority of India (AAI) for ongoing projects at Chennai, Coimbatore, Madurai, Tiruchirappalli, and Thoothukudi airports.
Additional land acquisition worth Rs. 350 crore is underway for Salem Airport.
Work on the proposed Greenfield Airport at Parandur, near Chennai, has been fast-tracked and a new airport has been proposed at Rameswaram – where AAI has begun the pre-feasibility study and two sites have been shortlisted (Uchipulli and Keelakarai).
According to the survey, Chennai International Airport’s Phase II expansion, costing Rs. 1,207 crore, is scheduled for completion and includes a new 86,135 sq. m terminal with upgraded passenger processing systems. Phase I, covering 1.49 lakh sq. m at a cost of Rs. 1,260 crore, was commissioned in April 2023.
Upon completion of both phases, the airport will operate four integrated terminals with a capacity of over 3.5 crore passengers annually and more than 500 aircraft movements per day.
At Tiruchirappalli International Airport, nearly 90 % of land acquisition has been completed for extending the runway from 8,136 ft to 12,500 ft. Thoothukudi Airport has completed a major upgrade, including extension of the runway to 3,115 metres, introduction of night landing facilities and commissioning of a 17,340 sq. m Chettinad-style terminal with 21 check-in counters, 3 aerobridges and an increase in passenger handling capacity from 156 to 1,400 passengers per hour.
At Coimbatore International Airport, AAI is developing a 75,000 sq. m terminal, expanding aircraft bays and taxiways, and proposing a runway extension to 3,800 metres, the Economic Survey notes. . VJ SAS CDS