On Tuesday, Andhra Pradesh Finance Minister, Buggana Rajendranath presented the budget of the state in the Assembly for the financial year 2020-21. Announcing the budget, the Minister stated that Rs 51 crores have been allocated to the upcoming Bhogapuram airport near Visakhapatnam. While detailing the budget, Mr Rajendranath also mentioned that the airport will be built over 2,200 acres at Bhogapuram. Out of the total allocated land, the airport will be constructed in 1,910 acres while 293 acres will be utilised for commercial purposes.
Earlier on 11 June 2020, the Andhra Pradesh Cabinet decided to take back 500 acres, from the total 2700 acres of land that were previously allotted for the construction of the Bhogapuram airport. Andhra Pradesh Information and Public Relations (I&PR) Minister Perni Nani announced that the 500 acres will be taken over by the state government for commercial purposes.
The following day, the Andhra Pradesh Government, signed an agreement with the GMR Group for the development of an international greenfield airport at Bhogapuram. A concession agreement was officially reac hed between the representatives of the State Government and the GMR Group, at Tadepalli, in the presence of Andhra Pradesh Chief Minister YS Jagan Mohan Reddy.
As per sources, the State Government also decided to drop the plan of building an aerotropolis, as opposed to what was proposed during the previous Chandrababu Naidu-led government. The GMR group will now be building only the airport at Bhogapuram.
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