Andhra Pradesh Moves Forward with PPP Model for Dagadarthi and Kuppam Airports

Rapid Summary

• The Andhra Pradesh government plans to develop several greenfield airports at Srikakulam, Bhogapuram, Tuni-annavaram, Tadepalligudem, Ongole, Dagadarthi, Kuppam, and Nagarjuna Sagar.
• The operationalisation of the greenfield international airport at Bhogapuram is expected by 2026. Commercial operations at Visakhapatnam airport will shift to Bhogapuram upon its completion.
• A new greenfield international airport at Amaravati is also proposed.
• Passenger traffic enhancement is planned for existing airports in Visakhapatnam,Rajahmundry,Vijayawada,Tirupati,Kadapa and orvakal (kurnool).
• To expedite the projects in Dagadarthi and Kuppam under a Public Private Partnership (PPP) model:

– Approval has been granted to initiate the process for selecting private concessionaires.
– The Industries and Infrastructure Department approved a draft Request for Proposal (RFP) based on the Techno-Economic feasibility report by RITES.
– APADCL will oversee land acquisition efforts and infrastructure progress with funding from an approved HUDCO loan.

Indian Opinion Analysis

The comprehensive approach to expand aviation infrastructure across Andhra Pradesh reflects strategic readiness for future economic growth and connectivity demands. Shifting commercial operations from Visakhapatnam Airport to Bhogapuram International Airport indicates efforts to create newer hubs while modernizing facilities in existing cities simultaneously.

The selection of private players through PPP models could prove crucial in maintaining efficiency within development timelines and reducing financial strain on public resources. However, smooth implementation hinges on effective coordination surrounding environmental clearances as well as timely execution regarding land acquisition-challenges often faced during such large-scale projects.

Boosting passenger traffic across multiple airports may enhance regional economic integration significantly once operational but requires sustained investment in complementary sectors like logistics connectivity or urban planning around these hubs.

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