AP Government Approves ₹1,000-Crore Loan Guarantee for Seven Airport Projects

Quick Summary

• The Andhra Pradesh government approved a guarantee for the Andhra Pradesh Airports Advancement Corporation Limited (APADCL) to secure a ₹1,000 crore loan.
• The funds will support land acquisition and external infrastructure for new airports at Kuppam, Dagadarthi, Srikakulam, and Amaravati.
• Additional Viability Gap Funding (VGF) has been pledged to address urgent APADCL liabilities.
• A larger plan involves developing eight greenfield airports across Srikakulam, Bhogapuram, Tuni-Annavaram, Tadepalligudem, Ongole, Kuppam, Dagadarthi and Nagarjuna Sagar.An international airport will also be established in Amaravati.
• In Phase 1 of the project:

– Airports in Kuppam and Dagadarthi have completed their Techno-Economic Feasibility Reports (TeFR).- TeFR studies are ongoing for Srikakulam and amaravati airports.

• The managing director of APADCL sought a “shortfall government guarantee” to obtain funds from HUDCO.

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Indian Opinion Analysis

The Andhra Pradesh government’s enterprising airport development plan aims to enhance air connectivity across the state while fostering economic growth in underdeveloped regions. By focusing on creating both regional airports and bolstering international connectivity wiht an airport at Amaravati,the project aligns with broader infrastructural goals.While the approval of ₹1,000 crore in guaranteed loans signifies strong governmental commitment to aviation expansion under phase 1 construction efforts at key sites like Kuppam and Dagadarthi could provide localized benefits sooner. However funding sustainability is reliant on securing financial partnerships as shown clear dependency gap requests