Budget dampens hopes of developing Vijayawada airport

February 28, 2015 05:56 pm | Updated November 17, 2021 02:11 am IST - VIJAYAWADA:

The hopes of denizens in Vijayawada were dashed after the Centre apparently failed to provide adequate budgetary allocations for developing the Gannavaram airport on par with the international airports.

Even as Airports Authority of India (AAI) and district administration are gearing up to begin the airport development works, the “Centre’s apathy” towards the key project has left everyone shocked. The Centre’s “indifferent approach” will have a bearing on State Government which is all set to present its annual budget. Andhra Pradesh is said to be heading for a deficit budget of Rs.16,000 crore.

The plans to take up expansion works reached a crucial stage with the district administration leaving no stone unturned to convince farmers in handing over their lands. A series of meetings were already conducted with the farmers in this regard and Union Minister of Civil Aviation P. Ashok Gajapati Raju and Chief Minister N. Chandrababu Naidu instructed officials concerned to expedite the work in the wake of increasing passenger patronage after bifurcation.

“The Union budget has disappointed everyone. There is no mention of the airport and other infrastructure projects in Andhra Pradesh,” said industrialist Malineni Rajaiah. Another entrepreneur, under condition of anonymity, said, “How can the Centre expect us to develop the airport even after knowing that the State is having deficit budget? The Central government’s decision will affect infrastructure projects to a large extent.”

The decision to increase service tax from 12.36 per cent to 14 per cent would also put additional burden on customers, including travellers. “Service tax is first collected from customers and later paid to the Government. It will certainly affect people,” added Smita Travels Proprietor V. Jogulamba.

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