Key Takeaways:
- Telangana has released the final consultancy payment to AAI, completing a ₹5.31 crore techno‑feasibility contract for six airports.
- The projects include three greenfield sites (Adilabad, Basanth Nagar, Palvancha) and three brownfield upgrades (Jakranpally, Mamnoor, Mahbubnagar).
- Telangana airport expansion could unlock regional connectivity, spur investment and aid industrial corridors beyond Hyderabad.
The Telangana government has cleared the final instalment of consultancy fees to the Airports Authority of India (AAI), concluding a multi‑year study that assesses the viability of six airports across the state. The sanction, issued as G.O. Rt. No. 600 by the Transport, Roads and Buildings (Airports) Department on 29 December 2025, paves the way for planning and implementation work aimed at broadening air connectivity beyond Hyderabad’s Rajiv Gandhi International Airport.
Telangana airport expansion advances with final AAI payment
The government approved a payment of ₹1,06,20,000, representing the remaining 20 per cent of the consultancy charges. With 18 per cent GST on the base consultancy of ₹4.50 crore, the total fee for the techno‑feasibility studies stands at approximately ₹5.31 crore. AAI had been engaged to carry out the studies after its chairman agreed to the assignment in July 2018, with payments disbursed in phases as the agency submitted drafts and final reports.
Initial funding of 20 per cent was released in May 2019 to commence the work. A further 60 per cent followed in March 2021 after AAI submitted draft Techno‑Economic Feasibility Reports (TEFRs) for all six sites. The final instalment became due once AAI’s Executive Director (Land Management) confirmed in October 2022 that the final TEFRs had been filed.
Projects and current status
The six proposals comprise a mix of new developments and upgrades to existing airstrips. The greenfield airports are planned at Adilabad, Basanth Nagar (Peddapalli) and Palvancha (Bhadradri Kothagudem), while brownfield upgrades are proposed for Jakranpally (Nizamabad), Mamnoor (Warangal) and Mahbubnagar.
Adilabad has recorded notable progress, with government orders issued for the acquisition of around 700 acres following an AAI feasibility clearance, subject to Indian Air Force approval for joint‑user operations. Basanth Nagar has received pre‑feasibility funds, enabling detailed planning to proceed. Palvancha is positioned to serve the eastern industrial corridor and nearby districts.
Among brownfield sites, Jakranpally has been identified as technically feasible and is slated for upgrades to revive the existing airstrip. Mamnoor secured centre approval in February 2025 with relaxations to permit operations by larger narrow‑body aircraft such as Airbus A320s and Boeing 737s. Mahbubnagar aims to strengthen connectivity in southern Telangana.
Economic implications and next steps
Officials say the studies will inform land acquisition, environmental clearances, airspace and defence coordination, and investment planning. If the projects progress to implementation, they could decentralise passenger and cargo flows, reduce travel time for regional travellers, and stimulate local industry and tourism. The expansion also aligns with broader national efforts to enhance regional connectivity and integrate smaller cities into aviation networks.
With the TEFR process now complete, attention will shift to detailed project reports, funding arrangements and clearances from multiple authorities. The government’s final payment completes the contractual obligations to AAI and signals readiness to move from feasibility to execution planning for Telangana’s next wave of airport development.
(Edited by Amit Vasudev)
