In preview of speeding up the Bhogapuram international airport project, the state government of Andhra Pradesh on Wednesday gave an administration sanction for releasing Rs 50 crore towards the Bhogapuram land acquisition.
To this effect, the Vijayanagaram district collector had requested release of Rs 100 crore towards payment of ex-gratia to the assignees and legal heirs of land losers for the formation of the International green-filed airport.
AP state government has formed the Bhogapuram International Airport Company (BIACL) under the Companies Act, which shall be fully owned by the state government.
Marked as the Bhogapuram Aerotropolis Project, the entire plan constitutes an international airport, maintenance, repair and overhaul (MRO) facility and an aviation academy.
The board of directors of BIACL authorized the company to approach commercial banks, financial institutions and infrastructure lending organisations for accessing loans stretching to Rs 1500 crore towards the pre-development activities.
This money would be used principally towards land acquisition, rehabilitation and resettlement (R&R) costs and creation of external utility infrastructure, like approach roads, water and power connection for the project site. The AP government has also sanctioned Rs 1 crore to BIACL on the parallel lines to meet its administrative expenses.