NELLORE: In the final stages of commencement of work on the airport being developed at Dagadarthi near Kavali in Nellore district, the project has hit a roadblock.
This is because of the government’s preference to go in for a centrally located and commercially viable project, rather than one fraught with viability risks.
The priority has now changed to developing an airport nearer the special economic zones (SEZs) and industrial hubs located in the Krishnapatnam and Gudur areas. These places are also easily accessible to industries in Nayudupeta and Tada.
Accordingly, Chief Minister N. Chandrababu Naidu has already instructed the departments concerned and also the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) to take a fresh look at the airport project.
The change in priority comes at a time when land acquisition for the Kavali airport has almost come to an end with officials focusing on disbursal of compensation.
Why the U-turn?
The main reason for the sudden U-turn is stated to be the previous experience in Kadapa, where an airport developed on a similar scale turned out to be a commercial failure because of lack of expected passenger traffic. This apart, there is no big chance of encouraging cargo traffic either.
As Kavali is located considerably far from the high-intensity industrial hubs, which are mostly in the southern coastal parts of Nellore district, the airport at Dagadarthi is also expected to face similar problems as in Kadapa.
As part of change in priorities, the government initially considered developing the new airport nearer to the highway at Venkatachalam and Manubolu stretch. There are huge tracts of forest land lying a few kilometres nearer to the national highway.
However, the authorities find it very difficult at this juncture as land acquisition will take a lot of time because it involves approvals from the Central government.
Commercial viability
Consequently, the officials have shifted their focus on acquiring 1,200 acres near Krishnapatnam, Sarvepalli, and Venkatachalam with the help of the APIIC.
The officials say that if land is found in this area, the airport coming up in future here would easily achieve commercial viability, considering the huge scope for freight traffic from both the port and industries, which include thermal power projects and edible oil refineries.
