The Tamil Nadu government, in its urgent bid to expand Chennai, is pushing for a second airport in Parandur, located 75 km from the state capital. There are plans to invite private players to develop the facility. However, the threat of land acquisition protests and political opposition can possibly derail the ambitious project.
In the meantime, the competition in South India’s aviation sector is supposed to intensify with the Karnataka government planning a second airport in Bengaluru.
Chennai had the upper hand in the early 1990s over Bengaluru in attracting foreign investment due to its skilled workforce, international airport, and business-friendly environment. Major firms like Cognizant were established in the city. Now the city has become less attractive for global investors.
In recent decades, Bengaluru surged ahead due to its state-of-the-art airport infrastructure. Chennai was left struggling to keep pace.
According to the Economic Times, despite being India’s second-largest state economy, Tamil Nadu’s capital has failed to keep up with aviation advancements.
Madras (Chennai’s earlier name) was among India’s earliest cities to have an airport, serving as the primary aviation hub for South India, connecting major domestic and international destinations in Europe, Southeast Asia, and Australia. Political support in the 1950s and ‘60s helped expand this connectivity.
However, complacency and lack of modernisation led to Chennai’s stagnation, while Bengaluru and Hyderabad forged ahead with world-class, privately managed airports. Bengaluru’s decision to build a Greenfield airport on the city’s outskirts proved to be a game-changer.
With cutting-edge facilities, efficient cargo handling, and seamless connectivity, Bengaluru is the preferred destination for investors. The city's competitive advantage has been increased.
Hyderabad further side-lined Chennai with a modern airport.
Cargo delays, limited parking for wide-bodied aircraft, and inadequate international connectivity are a few reasons behind Chennai’s loss of attraction.
Many businesses reportedly prefer routing goods through Bengaluru, citing efficiency and reliability as key factors.
A lack of political will and delayed decision-making contributed to Chennai’s aviation decline. Unlike Mumbai and Delhi, which saw airport privatization, Chennai remained under government control, stalling investments and improvements. Even during Nokia’s peak operations in Tamil Nadu, companies had to seek intervention from the Prime Minister’s Office for basic cargo infrastructure improvements.
While Tamil Nadu government is making renewed efforts to upgrade its aviation infrastructure, Chennai airport's challenges persist. The success of Parandur and other airport expansion projects will determine whether the city regains its lost edge in attracting global businesses. Until then, Bengaluru’s aviation supremacy remains unchallenged, continuing to influence major investment decisions in the region.
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