India to Scrap 150km Airport Rule as Minister Naidu Pushes for Multiple City Hubs

The Union Government of India is moving to allow multiple airports in major cities to manage the nation's rapidly growing India air passenger traffic, according to Union Minister for Civil Aviation Kinjarapu Rammohan Naidu. The Minister confirmed that the Centre will review the existing policy. This rule currently restricts the construction of two airports within a 150 km radius airport policy of each other. The move signals a major shift in greenfield airport development strategy for India's largest metropolitan areas.

Mr. Rammohan Naidu made the announcement following the successful first test flight at the Alluri Sitharama Raju International Airport at Bhogapuram. The new policy aims to address airport capacity saturation at existing major hubs like Delhi, Mumbai, and Chennai. The government will accept proposals for new airports once current facilities reach their maximum operational limits.

Policy Shift and Rationale

The existing '150 km aerial distance' rule for a new greenfield airport was designed to protect the commercial viability of existing airports, especially those developed under Public-Private Partnership (PPP) models. However, the Minister clarified that this clause no longer applies once an existing airport's capacity is fully saturated.

• The policy review will pave the way for second airports in metro areas.
• This is seen as a global trend and a best practice for managing high-volume traffic.
• The government is actively encouraging states to develop secondary airports to decongest primary hubs.

This policy change directly impacts major, ongoing aviation infrastructure investment projects. The Minister cited steps already underway for new airports in key areas. These include Navi Mumbai, Ghaziabad (for the National Capital Region/Jewar), Bengaluru, and Parandur (for Chennai). The Noida International Airport at Jewar, for instance, is nearing its final licensing approvals.

Surging Air Traffic and Economic Impact

India’s aviation sector is experiencing a period of historic growth. Domestic air passenger traffic is projected to grow by 7% in 2025. Industry analysts forecast domestic traffic to grow 7-10% in the fiscal year 2026, reaching up to 181 million passengers.

This rapid expansion necessitates a robust infrastructure plan. The government’s long-term vision aims to build 350 airports across the country by 2047, aligning with the 'Viksit Bharat' goal.

• The aviation sector contributes significantly to India's GDP and job creation.
• Focus is on promoting new airports and MRO facilities India to spur economic activity.
• Developing multiple access roads to all airports is also a priority to boost industrial progress.

Bhogapuram Airport Milestone

The Minister's announcement was made after a significant event at the new Alluri Sitharama Raju International Airport (ASR) at Bhogapuram. The first commercial validation flight, an Airbus A320 aircraft, successfully landed on Sunday, January 4, 2026.

This milestone marks a major step toward operational readiness. The GMR Group-developed airport is expected to begin full commercial operations by June 2026.

The ASR International Airport is designed to handle six million passengers annually in its first phase. Its 3.8-km-long runway can accommodate wide-body aircraft, including the Boeing 747-8 and Airbus A380.

Minister Naidu expressed confidence that the Bhogapuram airport will be a powerful growth engine for the North Andhra region. It is expected to strengthen trade, boost exports, and unlock the immense tourism potential of Andhra Pradesh. The state government has also earmarked land for adjacent aviation-linked services, including MRO facilities.

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