The Government of Andhra Pradesh has stepped up efforts to expedite the Shamshabad International Airport Project in Hyderabad. The process of land acquisition for the Rs 1,320-crore phase I of the project is nearing completion. Phase I envisages a passenger handling capacity of 10 million, Critics, however, question passenger handling of this magnitude.
The project is proposed to be located over an area of 5,000 acres at Shamshabad. The site is close to the Hitec City and the proposed area of Cyberabad.
The Central government has extended a package of concessions to Greenfield airport projects in the country. The Union Budget 2002-03 contained a package for Greenfield projects coming up with public-private participation in order to make them bankable and financially self-supportive. This package is expected to bolster investment inflows to the project.
According to AP government estimates, these concessions would mean a total savings of Rs 500 crore on the overall project cost. The project could also have a spin-off effect: its successful implementation has been linked with the success of other major projects like the Hardware Project proposed at a location adjacent to the airport.
The state government has selected the GMR Vasavi-Malaysia Airport Holdings Berhard (MAHB) consortium for developing the airport following a long drawn bidding process in December 2000. The bids were opened and the developer was chosen in May 2001.