AP cancels tender process for Bhogapuram airport project

Press Trust of India Amaravati | Updated on January 21, 2018 Published on January 21, 2018

The Andhra Pradesh Government has cancelled the entire tender process in which the Airports Authority of India (AAI) had emerged as the winner for the proposed Bhogapuram Aerotropolis project in Vizianagaram district last year.

The State Cabinet, which met under the chairmanship of Chief Minister N Chandrababu Naidu late last night, took the decision to develop the new greenfield airport under the public-private partnership mode.

“Across 2,703 acres, the scope of Bhogapuram airport will be expanded from a mere airport to an integrated airport with Aerocity, maintenance, repair and overhaul (MRO), Aviation Academy, etc,” an official release said today.

Besides AAI, GMR Group was the only other contender for the airport project.

GMR had offered a revenue share of 21.6 per cent.

Asked why the tenders were cancelled after the AAI emerged as the winner in August 2017, offering 30.2 per cent revenue share to the State Government, Principal Secretary (Energy, Infrastructure and Investment) Ajay Jain told PTI they wanted to go for development of an “integrated airport”.

“The scope of the project has been expanded. That’s the only reason,” he added.

The international airport was proposed to be developed three years ago at a cost of over ₹2,200 crore, 40-km from port city Visakhapatnam, as it did not have a civilian airport.

The current airport in Visakhapatnam belongs to the Indian Navy.

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Published on January 21, 2018
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