Amaravati: The state government issued orders awarding the project for development of  greenfield No-frills Green Field Airport at Dagadarthi in Nellore District to M/s. SCL-Turbo Consortium Pvt. Ltd, under public-private-partnership (PPP).Already, 1350 acres of land has been identified for the airport. 

The SCL-Turboconsortium envisaged a total investment of Rs.368.38 crores in the initial phase instead of the total estimated projected cost of Rs. 224 crores. The consortium proposed to develop the airport for operation of 4E aircraft instead of 4C category of aircraft with a total passenger handling capacity of 1.26 million with main focus on cargo operations and revenue generation.

Though, there was some criticism from Opposition parties over the decision in favour of film actor Ramcharan’s company, Turbo Megha group, the government has taken firm decision to go ahead with the SCL-Turboconsortium on construction of airport.

Energy, Infrastructure and Investment department said two bids had been received on the bid due date of June 7,2016 and the technical committee selected the SCL – Turbo Consortium as responsive bidder and the bid submitted by V2C Aviation Pvt. Ltd., as non-responsive.

The empowered committee, which met on April 26 to deliberate regarding selection of developer for development of Dagadarthi Airport, discussed the revised offer of the bidder. The committee also took decisions that extra land other than what is required for the airport and earmarked for future expansion as per the request for proposal (RFP) will be provided only after the commercial operation date of the project.

 After receiving the letter from managing director of Bhogapuram International Airport Corporation on May 12, who reported to the government that the security clearance for SCL-Turbo consortium had been received from Centre, the state government accorded awarding the project to SCL Turbo and approved the draft concession agreement.

The government also accept the revised financial offer of SCL-Turbo Consortium over revenue share. It proposed nine per cent to commence from 16th anniversary of the commissioning of airport with an escalation of one per cent every year subject to ceiling of 30 per cent. 

The concessionary should pay an annual lease rental of Rs.1000 per acre per annum incremented annually at the rate of six per cent. Concession to consortium is for 66 years commencing from the appointed date with option of extension of additional 33 years.As per master plan, the airport envisages a handling capacity of 0.5 million passengers per annum in phase-I till 2030 and 1.9 million passengers per annum in phase-II till 2045.