VIJAYAWADA: The State government on Wednesday terminated the Concession Agreement (CA) it entered into with the SPV constituted to develop an airport at Dagadarthi in Nellore district. The contract was awarded to SCL-Turbo Consortium Private Limited for development of the greenfield airport at Dagadarthi through PPP mode.
The airport was proposed to be a low-cost airport and about 1,352 acres of land was earmarked for the project.
The project was awarded under PPP mode of Design, Build, Finance, Operate and Transfer to M/s SCL-Turbo Consortium Pvt Ltd in September 2017 and the CA should have been signed within 30 days.
However, due to non-fulfilment of the conditions by the CA, there were multiple extensions provided for signing of CA and was it finally signed in June 2018.
However, the developer is yet to achieve the financial closure of the project till July 15, 2019 and the bidder did not seek an extension of time.
Meanwhile, the Consortium informed the Andhra Pradesh Airports Development Corporation Limited that handing over of the land is the basic condition for development of the airport.