Giving a major boost to the plans to develop airports in Andhra Pradesh, the state government secured a loan of Rs 1700 crore for three airports, Bhogapuram, Orvakal and Dagadurthi. While the government wants to develop an international airport at Bhogapuram near Vizag, the other two are No Frills Greenfield Airports.
The public sector Housing and Urban Development Corporation (HUDCO) has come forward to fund for the land acquisition and pre-development activities to the tune of Rs 1500 for the proposed Bhogapuram International Airport near Visakhapatnam.
The loan up to Rs 1,500 crore can be drawn fully or partially as per the requirement of the Government of AP (GoAP) and there is no penalty for partial drawl. Today Andhra Pradesh government agreed to provide guarantee to avail the lone for the first phase program of the development of airport. Government would provide guarantee for Rs 854 crore for a loan of Rs 650 crore.
The repayment of the loan will be made from the budgetary allocations. The total interest payable to the HUDCO at the end of third year will be Rs 204 crore and the total amount of loan for Land Acquisition and interest payable for three years ie during the construction period works out to Rs 854 crore.
Similarly HUDCO has extended another Rs 200 crore loan for similar activities at Orvakal, Kurnool district and Dagadurti, Nellore district for the proposed No Frills Greenfield Airports at a rate of interest of 10.44 pc PA. In the case of Orvakal and Dagadurti airports, the public sector RITES has already submitted Technoeconomic feasibility report. The ministry of civil aviation has also accorded the in principle site clearance for the two airports.
Now, with HUDCO coming forward to assist these project with a loan of Rs 200 crore. government is expected to commence the land development process soon.
