On the runway: GMR's ₹14,000 crore capex plan for Hyderabad airport

GMR Hyderabad International Airport Ltd (GHIAL) has drawn up a capital expenditure plan of nearly ₹14,000 crore to be implemented by 2030–31 (FY31) for a major expansion of Rajiv Gandhi International Airport (RGIA) in Telangana’s capital city, Business Standard has learnt. The plan includes enhancing the capacity of the existing terminal, constructing a new terminal and second runway, improving road access and metro connectivity, and scaling up parking and cargo infrastructure to meet rising demand.

 

Hyderabad airport — India’s fourth largest—  has witnessed rapid growth over recent years, with passenger traffic increasing from 18.3 million in FY18 to 29.5 million in FY25, at a compound annual growth rate (CAGR) of 7.1 per cent. This growth, GHIAL noted, has brought the airport close to its current design capacity of 34 million passengers per annum (mppa), necessitating urgent upgrades.

 

GHIAL, in an internal document, has proposed expanding the existing terminal to handle 47 mppa (from the current 34 mppa) and beginning construction of a new terminal with an additional 20 mppa capacity in the northern precinct. These upgrades will be supported by a second runway and an elevated cross-taxiway connecting the two terminals. 

 

Given the nearly three-year construction timeline for a new terminal and runway, work on the northern side is proposed to begin by FY27 to ensure readiness by September 2029. The new terminal’s expansion will be executed in modular phases depending on traffic triggers, according to the document reviewed by Business Standard.

 

The new 3,800-metre runway would be equipped with a Category-I Instrument Landing System, which allows aircraft to land safely even in low-visibility conditions. It will also include advanced navigation aids such as PAPI (precision approach path indicators that help pilots maintain the correct approach angle) and SMR (surface movement radar used to track aircraft and vehicles on the ground). The cross-taxiway, designed to handle wide-body aircraft, will be elevated over the airport’s main access road and will span 650 metres, linking the northern and southern airfields, GHIAL noted.

 

GHIAL did not respond to queries sent by Business Standard on this matter. The aforementioned document has been prepared for the Airports Economic Regulatory Authority (Aera), which determines aeronautical tariffs -- such as aircraft landing and parking charges, and user development fees -- that the airport operator is allowed to collect from airlines and passengers. Aera will now begin the consultation process to finalise tariffs for RGIA for the FY27–31 period.

 

While the current terminal is designed to handle 34 million passengers per annum, the runway is currently approved for 42 aircraft movements per hour and typically handles around 36 during peak times. With regulatory approvals and high-intensity operations, this capacity could be increased to 46–47 movements per hour. However, a study by aviation consultancy firm CAPA forecasts that even this expanded limit will be breached by FY29. Therefore, one more runway would be needed.

 

Under the capex plan, a new terminal -- spread over 225,000 square metres -- is expected to handle predominantly domestic traffic but will be built with flexibility for international operations. The total cost for building the new terminal and associated landside infrastructure, such as roads, landscaping, IT systems and support facilities, will be ₹5,843 crore, according to GHIAL’s document.

 

The expansion of the current terminal building to 47 mppa will cost ₹427 crore, which includes adding nine Code C aircraft stands, used for smaller single-aisle aircraft like the Airbus A320, and converting one Code E stand, which can handle larger wide-body jets like the Boeing 777, into a MARS (Multiple Apron Ramp System) stand. A MARS stand is a flexible parking layout that can either accommodate one wide-body aircraft or two smaller aircraft simultaneously, allowing better space utilisation during peak operations. 

 

The project also includes an increase in multi-level car parking slots from the existing 2,600 to 5,590, ensuring sufficient capacity for future needs.

 

The GMR Group-led GHIAL holds a long-term lease on Hyderabad airport until 2068.

 

The operator’s cargo handling capacity currently stands at 150,000 metric tonnes per annum (mtpa), and it is building a second cargo terminal with a 50,000 mt capacity at a cost of ₹160 crore, of which ₹103 crore has already been spent. The project is expected to be completed by July 2025.

 

GHIAL’s document also detailed plans to support Hyderabad’s growing urban footprint with improved connectivity. The current options to reach RGIA include the 11.6-km P V Narasimha Rao Expressway, Nehru Outer Ring Road, and Srisailam Highway. However, the Telangana government, through Hyderabad Airport Metro Ltd (HAML), has proposed extending the metro service from Nagole via LB Nagar and Chandrayangutta to RGIA.

 

The metro will address growing traffic congestion around the airport, particularly with the rise in residential and commercial developments in Shamshabad and its vicinity. “In order to make the project viable, the Telangana government has sought financial contribution from GHIAL and, considering the importance of providing metro rail connectivity to the airport for passenger comfort and affordability, the board of GHIAL has recommended that we provide support to the project cost. GHIAL will contribute to the segment of the proposed metro line project located within the airport premises,” GHIAL noted.

 

The total capital outlay for the fourth control period is pegged at ₹13,917 crore-₹12,256 crore for expansion and ₹1,661 crore for general capital expenditure. Of this, ₹5,843 crore will go towards developing a new terminal. Other major components of the proposed capex include ₹2,809 crore for airside infrastructure such as the runway, taxiways, and apron; ₹389 crore for utilities including sewage, water systems, and substations; ₹910 crore for earthworks; and ₹890 crore for improving airport connectivity and transport infrastructure.

 

RGIA handled 29.5 million passengers in FY25. It served 24.4 million domestic and five million international passengers, showing the second-highest growth rate for international traffic over the past decade, despite ranking sixth in volume. In FY25, it handled 7.1 per cent of India’s total passenger traffic and 7.0 per cent of the total aircraft movements, putting it just behind Delhi, Mumbai and Bengaluru.

 

The airport is currently connected to 72 domestic and 24 international destinations. With Indian carriers having placed orders for nearly 1,800 Western-built aircraft -- twice the size of the current fleet -- GHIAL said it stood to benefit significantly as a key aviation hub. 

Full throttle ahead 

Key components of the capex plan:

 

• ₹5,843 crore for construction of new passenger terminal
• ₹2,809 crore for new runway, taxiway, and apron development
• ₹389 crore for utilities like sewage, water, and substations
• ₹910 crore for earthworks across airport expansion site
• ₹890 crore for connectivity and transport infrastructure upgrade