VIJAYAWADA: Government land for just Re 1 per acre has been given to Bhogapuram International Airport Corporation Limited (BIACL) for establishment of a greenfield airport at Orvakal in Kurnool district, though the market value of the said land is Rs 8 lakh per acre. A total of 638.83 acres have been given for the purpose in such a manner.
The decision was taken by the government after Investment and Infrastructure department had made the proposal to the government, citing the importance of the project. Government is keen on developing greenfield airport at Orvakal, seeing a future potential in the district, which is second largest and economically well-balanced.
With plans afoot for the development of Kurnool district as a hub for mineral-based industries and food processing and with massive solar and wind power plants being set up in the district, needed for air connectivity was considered a necessity.
Determining the market price of the land, government on February 2 had issued a government order alienating the land to BIACL for Rs 8 lakh per acre. However on February 6, BIACL managing director M Venkateswarlu wrote a letter to the government stating that the market value of the land fixed is high, which is a heavy burden on BIACL for implementing the unviable airport project. He said the project has been taken up in public interest even though it is financially unviable.
Pointing out that BIACL is a 100 per cent government owned corporation, a special purpose vehicle formed by the government for specific purpose of development of new greenfield and brownfield airports in the State, he requested the government to give the land free of cost or on payment of nominal price of Re 1 lakh per acre instead of Rs 8 lakh per acre.
Following the directions of the government, the modified order was issued giving the land for just Re 1 per acre. “Previously land was only given to APIIC that too free of cost, but considering it as a special case, we were asked to give the land to BIACL at Re 1 per acre,” Principal Secretary (Revenue) JC Sharma said.
It is learnt that though the project is being considered as financially unviable, expecting some relief in the form of viability gap funding, the decision has been taken.