AP govt plans 7 greenfield airports in PPP mode

By : VDS Rama Raju
Last Updated: Tue, Dec 25, 2012 19:00 hrs

Each of the proposed airports will entail an investment of between Rs 1,000 crore and Rs 2,000 crore

The Andhra Pradesh government is proposing to develop seven greenfield airports in a public-private partnership (PPP) mode, each entailing an investment of between Rs 1,000 crore and Rs 2,000 crore, according to state minister for infrastructure, ports and airport Ganta Srinivasa Rao.

“The Administrative Staff College of India (ASCI) has already submitted its draft report to the government, which will be made available to the public and other stakeholders like air travelers associations, travel agents, CII (Confederation of Indian Industry) and Ficci (Federation of Indian Chamber of Commerce and Industry), within a month for suggestions,” he told Business Standard.

The new airports, in which the state government will hold some equity, will come up in Tier-II regions like Warangal, Kothagudem, Tadepalligudem, Vizainagaram, Srikakulam, Ongole and Nellore. Besides, the government proposes to upgrade the existing airport at Kadapa, the minister said.

The Andhra Pradesh government had come up with its new civil aviation policy in August 2012, to create better air connectivity for the people of the state and spur industrial growth.

While private investors will be spending Rs 1,000-2,000 crore on each of these greenfield airports, Rao said that the state government, on its part, will offer concessions including land, water, power and approach road facilities, besides cancelling registration frees so as to allow the investors to commence commercial activities on the government-allotted land.

According to the minister, the state government, after receiving requests from several corporate houses like NCC Limited, East Cost Energy and Penna group seeking permissions to construct captive jetties for their own use, is currently formulating a captive jetty policy’.

“The government has appointed Indian Ports Association to prepare a model concession agreement. Based on this, the government will frame a uniform policy for allowing captive jetties,” Rao said, adding that each jetty will cost about Rs 250 crore, including construction of break waters.

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