After the AP state government has agreed to compensate the Bhogapuram land owners with an all-time high rate, the administration is set to commission a high end feasibility study to evaluate the location. To this effect, AP govt is likely to commission a Techno Economic Feasibility Study (TEFS) to get an approval from the Minister of Civil Aviation for the international airport on the Srikakulam – Vizag NH.
AP Govt is willing to pay up to Rs.33 Lakh per acre, the highest-ever compensation offered in the history of Andhra Pradesh, in order to fasten the land acquisition process. The government has already created the Bhogapuram International Airport Company Limited (BIACL), that will look into the statutory requirements for the project.
BIACL will now have to prepare a Techno Economic Feasibility Report (TEFR) in order to confirm that the proposed airport will be financially viable.
The state government is looking at no hassles with revenue generation, with intended plans to convert the area into a major aviation destination. There will be a Maintenance, Repair and Overhaul (MRO) Aviation Academy established soon.
BIACL will also take care of setting up 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 while speaking to a leading newspaper daily.