AAI bags Bhogapuram International contract

Published on: 

In an interesting twist in Andhra Pradesh, Airports Authority of India (AAI) bagged Bhogapuram Green Field International Airport contract amid a great tension proposed to develop in Vizayanagaram District of Central Minister for Civil Aviation, Ashok Gajapathi Raju. AAI stood as number one in the bid offering highest revenue share to the State Government rather more than its competitor, GMR group, a known developer of the best International Airports like Mumbai, Delhi and Hyderabad.

The State Department of Infrastructure opened financial bids of the two competitors, AAI and GMR, in tense conditions as the GMR group belonged to Vizayanagaram District where Bhogapuram Green Field International Airport would be developed. AAI offered 30.2% of revenue share from its receipts received from Bhogapuram Airport apart from paying land leased charges to the State Government. Whereas, GMR group, which more interested to grab the bid, quoted only 21.6% of revenue share.

Worried after knowing AAI's competitive bid, GMR Promoters met the Chief Minister Chandra Babu Naidu and Civil Aviation Minister Ashok Gajapathi Raju much before opening of bids, but the attempts went in vain. Chief Minister Naidu denied to intervene in the issue, the Government sources said.

Ajay Jain, State's Principal Secretary to Departments of Infrastructure, Energy and CRDA has expressed satisfaction over the bidding. "State Government is going to get benefit out of AAI bidding. We have already acquired required land of 2800 acres. As Visakhapatnam Airport exists in Navy's land, there is no much scope to develop amenities and runways, hence, Bhogapuram International Airport, Jain explained. Apart from Bhogapuram Airport, State's Infrastructure Department had given clearance to another competitive bid meant to develop Dagadarthi Airport in Nellore District, he said, where cargo potentiality is high because of high congestion in Chennai Airport.

From the developers of Dagadarthi Airport, Turbo-Srinivasa Constructions-Sabana (Kaulalampur Developer), had offered 9% of revenue share to the State Government as it is a smaller one, Ajay Jain told.

Daily Pioneer
dailypioneer.com