The Government of Karnataka signed a memorandum of understanding (MoU) with the Airport Authority of India (AAI) in January 2013 to develop Hubli Airport.The AAI will expand it into an all-weather airport at a cost of Rs 1.60 billion. Accordingly, 588 acres (2.38 km2) of land was acquired by the State Government and handed over to the AAI.
The area of the airfield will be increased to 615 acres and the runway will be extended to 7,500 feet. The runway extension work is expected to cost Rs 900 million. A new taxiway, roofing, fire station and a domestic terminal building are also part of the up gradation project that will enable the operation of larger aircraft like the Boeing 737 and the Airbus A320. AAI constructed a new DVOR building and NDB building in 2016 and commenced the work on extension, strengthening & widening of runway, taxiways & isolation bay. A new Terminal Building, ATC tower cum Technical block cum Fire Station, sub-station, new apron and other ancillary buildings and services including perimeter road are under construction. The project is expected to be completed by 2018.
