AP in Talks with Air India to Build Global Hub in Amaravati
The efforts of Andhra Pradesh Chief Minister N. Chandrababu Naidu to attract investments to the state will get a major boost if the government’s dialogue with Air India to make the proposed greenfield airport in Amaravati its global hub fructifies.
Hyderabad:The efforts of Andhra Pradesh Chief Minister N. Chandrababu Naidu to attract investments to the state will get a major boost if the government’s dialogue with Air India to make the proposed greenfield airport in Amaravati its global hub fructifies.
The Chief Minister has in principle decided to go in for a second round of land pooling in addition to the existing 35,000 acres to accommodate more projects, including the airport, according to official sources.
“Air India which has placed a massive order for new aircraft is looking for its own base, as the cost of parking and maintenance of its fleet will be very high if it chooses any of the existing airports,” a senior official in the know of developments told Deccan Chronicle.
The AP government is said to have offered to work with Air India on facilitating the base and both have agreed to explore the possibility of building the new airport with allied activities. “There is some ambiguity on whether the operator itself can own or operate an airport,” the official said adding that the talks would advance once clarity emerges on this aspect.
Sources said both the state government and Air India were of the view that a standalone airport would not be viable given the passenger traffic volume, and combining it with maintenance, repair and overhaul (MRO) operations would make it viable. The government had called for a technical consultant to prepare feasibility report of the new project. With only one agency participating in the tender, the government called for fresh tenders.
“The Chief Minister has taken an in-principle decision to build an Aero City. It is not clear yet whether it would be built within the 35,000 acres already notified as capital region or additional land would be pooled,” the official pointed out.
Naidu had made similar effort in his first stint between 2014-19 following a proposal made by the Air Costa airlines. He even brought down value-added tax in aviation turbine fuel from 30 per cent to four per cent. However, Air Costa shut down operations due to a financial crisis.