Andhra Govt Backs ₹1,000-Crore Loan for Greenfield Airport Push

The Andhra Pradesh government has approved a ₹1,000 crore loan linked to the establishment of greenfield airport ventures.

With this funding sought by the Andhra Pradesh government, the development of seven greenfield airports through major financial input to the tune of ₹1,000 crore will commence in the state via Andhra Pradesh Airports Development Aid. This fund will be used primarily for land acquisition and external infrastructure development around key airports near the station.

In the G.O. of the order issued by N. Yuvaraj, Secretary of Infrastructure & Investment (Airports), the G.O. states that the funds were to initiate works for the Kuppam, Dagadarthi, Srikakulam, and Amaravati airports. They are the first four projects in Phase 1 of the overall aviation development strategy of the state.

The eight greenfield airports are being proposed at Srikakulam, Bhogapuram, Tuni-Annavaram, Tadepalligudem, Ongole, Kuppam, Dagadarthi, and Nagarjuna Sagar. The recently proposed Bhogapuram international airport would add to these airports. There is even a proposal regarding another greenfield international airport in Amaravati to support connectivity with the state capital region.

The government has granted in-principle approval for ₹1,570.64 crore for land acquisition to materialize this ambitious expansion. As ordered, the APADCL has approached financial institutions for funding, including a ₹1,000 crore loan from Housing and Urban Development Corporation Ltd. (HUDCO), for which the government would provide a “shortfall guarantee.”

So far, the TeFRs have been finalized for Kuppam and Dagadarthi. Respective TeFR studies are currently underway for Srikakulam and Amaravati.

Officials think that this initiative will trigger regional development through improved air connectivity in under-served parts of the country and the infusion of investments in the sectors. The development of the scheme will also fast-track project executions and rest investors’ skepticism regarding the state’s infrastructure schemes with a guarantee from the government.

This multi-airport scheme will continue to complement Andhra Pradesh in its endeavor to make a name for itself as a leading logistics and transshipment hub in southern India, more so as this brings in an enormous increase in the demand for inter-regional air travel and cargo services.