State likely to commission feasibility study for Bhogapuram airport

The State government is likely to commission a Techno Economic Feasibility Study (TEFS) to obtain the in-principal approval from the Ministry of Civil Aviation for the proposed Bhogapuram International Airport on the Srikakulam-Visakhapatnam National Highway. The government, which is keen on the project, has expressed its willingness to pay up to Rs.33 lakh per acre, the highest-ever compensation offered in the history of Andhra Pradesh, to speed up the land acquisition process. The government has already created the Bhogapuram International Airport Company Limited (BIACL) to look into the statutory requirements for the project. The company, which is completely owned by the State government, will have to prepare the Techno Economic Feasibility Report (TEFR) to prove that the proposed airport will be viable financially also.

The government is confident that revenue generation would not be difficult since it plans to convert the area into a major aviation destination by establishing Maintenance, Repair and Overhaul (MRO) Aviation Academy too there.

The BIACL will also take care of establishing airports in places like Kuppam (Chittoor district), Orvakal (Kurnool district), and Dagadarthi (Nellore district).

“Air traffic may not be much in Bhogapuram since only 60 aircraft may be operated per day initially. Private companies will be enlightened on the possibility of generating revenue through other activities related to aviation. The MoCA is likely to be convinced with the Bhogapuram proposal once the TEFR is submitted formally,” says a senior official.

ATAI appeal

Meanwhile, Air Travellers Association of India (ATAI) president D. Varada Reddy has urged the Prime Minister to direct the State government to shelve the Bhogapuram airport proposal as it would be a burden on the passengers in the form of User Development Fee.

“Private operators collect at least Rs.1,000 as UDF from domestic passengers and Rs.3,000 from international passengers. We should not forget that the Shamshabad airport is yet to achieve breakeven in spite of operation of over 500 aircraft per day. How can it be possible for the private operators to generate income from just 60 aircraft per day?” Mr. Varada Reddy wondered.