KLM tried in early 2021 and wanted to come back with limited flights to HYD under the air bubble scheme. MoCA shot it down saying max they were willing to allow for KLM were two destinations under bubble which they were already flying to (BOM and DEL).
For far too long the policymaking has been airline-centric at the cost of other stakeholders such as airports, ground handling agencies, duty free operators and the public at large - this approach, sacrificing the interests of general travelling public and the economy at large (think of all those companies that need access to passenger/cargo services at good enough frequencies, capacities and competitive prices) has played the biggest role in limiting the natural growth of aviation in our market. Unfortunately, the affected parties don't have a unified voice whereas the ones playing the victim card loudly, in particular an airline well known for its 'sprawling' fleet of wet-leased aircraft have the loudest voice and the best access to 'policymakers'. Also, it doesn't help that the public too perceives aviation as basically airlines, so their proclamations easily get a big chunk of the public mindshare too.
In the above case of AMS-HYD, Telangana government too was involved but MoCA would not budge since it would have been unfair on 'our' carriers which as we all know already possess a vast fleet of wide-bodies that have been just dying to service the route if not for pesky overseas competition. I think the last couple of MoCA admin setups, and in particular the one with former BMRCL boss in it have been the most openly, blatantly pro-airline grouping (at the cost of everyone else. I am hopeful that with a certain disruptive new airport operator with 'connections' coming in, it might rebalance the equation in some interesting ways 😆
Anyways I am just a random guy ranting on the internet so take it for what its worth, no compulsion on anyone to believe this. Can't provide any proof that is in the public domain.