Budget deals a blow to Gannavaram airport expansion

March 01, 2015 12:00 am | Updated April 02, 2016 09:58 am IST - VIJAYAWADA:

Even as the Airports Authority of India (AAI) and the district administration are gearing up to commence development works at the Gannavaram airport, the “Centre’s apathy” towards the key project has left everyone shocked. The Centre’s “indifferent approach” will have a bearing on the State, which is all set to present its annual budget. Incidentally, Andhra Pradesh is 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 had already been conducted with farmers in this regard, and Union Minister of Civil Aviation P. Ashok Gajapati Raju and Chief Minister N. Chandrababu Naidu had instructed officials to expedite works in the wake of increasing passenger patronage post-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, on condition of anonymity, said: “How can the Centre expect us to develop the airport even after knowing that the State is having a deficit budget? The Centre’s decision will affect infrastructure projects to a large extent.”

Additional burden

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

“The Union Budget has disappointed everyone. There is no mention of the airport and other infrastructure projects in Andhra Pradesh.”

Malineni Rajaiah,

Industrialist

“How can the Centre expect us to develop the airport even after knowing that the State is having a deficit budget? The Centre’s decision will affect infrastructure projects to a large extent.”

An entrepreneur

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