A special purpose vehicle has been formed for the development of the proposed Greenfiled airport at Bhogapuram in Vizianagaram district of Andhra Pradesh.

The State Government is taking up the new airport project and plans to develop it as Bhogapuram Aerotropolis through the SPV named Bhogapuram International Airport Company Ltd (BIACL), a 100 per cent State-owned company. The SPV will have an authorised share capital of Rs 50 crore divided into 50 lakh equity shares of Rs 10 each.

The State Government through an order has designated the Vice-Chairman and Managing Director of Infrastructure Corporation of Andhra Pradesh Ltd (INCAP) as project proponent for the development of four Greenfield airports namely Bhogapuram in Vizianagaram district, near Vishakhapatnam, Kuppam in Chittoor district, Oravakallu in Kurnool and Dagadarthi in Nellore district.

The Government proposes to develop a modern aviation infrastructure in the newly formed residuary State of AP. The project would include the development of Greenfield Aerotropolis with an international airport, MRO (maintenance, repair and overhaul) facilities and an Aviation Academy at Bhogapuram.

The INCAP has submitted documents to the Ministry of Civil Aviation to communicate the State’s interest to develop the Greenfield airport at Bhogapuram for site clearance and follow-up measures.

The SPV has been entrusted with the task of securing the airport related approvals and clearances and obtain land for the project. It would prepare a feasibility report, detailed project report, impact assessment report and technical and financial viability of the project.

After the preparatory stage and bidding process to select the developer, the SPV will be transferred by divesting the stake to the successful bidder or consortium chosen for the project implementation.

The State Government has also constituted a board comprising senior officers for SPV.

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Published on May 21, 2015