Andhra Pradesh

HUDCO to release Rs.650 cr to acquire land for Bhogapuram Airport

A file photo of the plan for the proposed international airport at Bhogapuram in Vizianagaram district.  

Decks have been cleared for an important milestone for the major project of the Bhogapuram International Airport near Visakhapatnam.

The Andhra Pradesh Finance department, HUDCO and the Special Purpose Vehicle Bhogapuram International Airport Company Ltd., entered into a formal agreement on Thursday that the Andhra Pradesh Government would stand guarantor to the Rs.650-crore loan to be extended by HUDCO.

The amount will be utilised by the government to acquire 2,400 acres for the Airport in the first phase. As per the agreement, “The amount will be released by the HUDCO in 10 to 15 days to BIACL.

The BIACL will keep the money at the disposal of Vizianagaram District Collector to start the land acquisition process and make the payments to the land owners,” official sources said.

This is one of the major projects proposed by the Investment and Infrastructure department. Earlier the department proposed to acquire 13,000 acres under land pooling and it was met with stiff resistance from local people and farmers. Subsequently, the government decided to acquire only 2,400 acres in the first phase under the Land Acquisition Act after a series of meetings with the stakeholders.

The government had agreed to pay more amount than stipulated under the LA Act under the Relief and Rehabilitation package, sources added.


The land acquisition process should be over in about six months and the HUDCO loan comes with a moratorium of three years and the loan would have to be repaid over 17 years. Once the land is acquired, the BIACL would invite international bids for the construction of the airport which will be big enough for the biggest aircraft Airbus 380 to land.

Sources added that the airport will be equidistant to Visakhapatnam and Vizianagaram and about 50 km away from Srikakulam thus accessible to three north Andhra districts and would address the long felt need for an international airport in the cosmopolitan city of Visakhapatnam and the district with the fastest growth rate.

By the time the airport will come up, a four-lane road would also be in place from the 29-km RK Beach to Tagarapuvalasa beyond Bhimili providing important and fast connectivity to the airport. The work on the road upto Bhimili is under progress, they said.

The I&I department is also finalising Rs.200 crore loan from HUDCO for land acquisition for two more airports at Urvakal in Kurnool and Dagadarthi in Nellore district.

The Urvakal airport will be a small low cost airport to be executed as an Engineering Procurement Project and the Dagadarthi airport will be taken up in the PPP mode. The Dagadarthi airport will be close to both Sri City and Krishnapatnam port.

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Printable version | Sep 28, 2021 3:12:11 AM |

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