Three airports set to take wing

: Speeding up the process of setting up of the Bhogapuram aerotropolis and two no-frills airports at Nellore and Kurnool, the Andhra Pradesh government has decided to provide guarantee to over Rs. 1,000-crore loans that would be mobilised by the special purpose vehicle.

Accordingly, the government will give guarantee to the Rs. 854-crore loan to be obtained for the Bhogapuram international airport, maintenance, repair and overhaul facility and an aviation academy being developed by the Bhogapuram International Airport Corporation Limited (BIACL) and Rs. 200-crore loan for the two no-frills airports proposed at Orvakal in Kurnool and Dagadarthi in Nellore.

Pre-development activities

The HUDCO had come forward to extend Rs. 1,500 crore loan for the Bhogapuram project for taking up pre-development activities, including land acquisition, rehabilitation & resettlement and community activities besides providing external utility infrastructure like approach roads.

No commitment fee

The tenure of the HUDCO loan for the project is 20 years with fixed interest rate of 10.45 per cent and moratorium of at least three years. There would be no commitment fee and the interest should be charged on the amount obtained from the date of drawl. The BIACL has been advised not to draw money in one tranche, but to harmonise drawl with utilisation.

In-principle site clearances

The acquired land would be vested in the government, not BIACL and it would be used as the government’s equity at an appropriate time. The airports at Nellore and Kurnool had received in-principle site clearances from the Union Civil Aviation Ministry.

The income for the government through the two airports would come through the licence fee and revenue share.

The revenue share for Dagadarthi airport would commence after 10 years from the date of commercial operations while it would be after 15 years in the case of the Orvakal airport.

The government had agreed to the proposal of obtaining the loan at a fixed interest rate of 10.44 per cent as per the HUDCO norms.

Govt. to stand guarantee for loans from HUDCO