Andhra Pradesh Government is planning to develop one Greenfield international airport at Bhogapuram, near Visakhapatnam and upgrade a few more in the State.

According to the Socio Economic Survey 2014-15, which formed part of the (2015-16) Budget documents, the airports in Tirupati, Vijayawada and Rajahmundry are to be modernised. The upgrade would be to international standards. The State government is also planning to develop six no-frills airports.

In his budget speech, lasting almost two hours, Finance Minister Yanamala Ramakrishnudu said no frill airports are proposed at Nagarjuna Sagar, Guntur district and Donakonda in Prakasam district. Regional airports are to be developed in Kuppam, Chittor district; Dagadarthi in Nellore district; and Orvakallu in Kurnool district.

The State government, he added, is extending support to Airports Authority of India for expansion or modernisation of existing airports in Vijayawada, Rajahmundry and Tirupati.

Machilipatnam port on PPP mode

According to Mr.Ramakrishnudu, the government proposes to develop Machilipatnam port under the PPP (public-private-partnership) mode. Andhra Pradesh, he added, has also conveyed its consent to a proposal of the Centre for a second major port – one exists in Visakhapatnam. The State, he said, will be providing the available government land as equity. “One more commercial port in private sector at Kakinada is also expected to come up,” he added.

Stating that a provision of Rs.195 crore is being made in the Budget towards infrastructure and investment, the Finance Minister said given the growing gap between natural gas demand and supply, the State government is keen to set up an LNG (liquefied natural gas) importation terminal. Putting it in context, he said coastal facility would help considering that the demand within the State is huge, particularly from power, fertiliser, refinery, glass and ceramic sectors.

The State government has approved the proposal of Andhra Pradesh Gas Distribution Corporation Ltd (APGDC) for establishing a FSRU (Floating Storage and Regasification Unit) based LNG terminal at Kakinada deep water port. Approval, he said, has also been granted for setting up another LNG terminal at Gangavaram port, Visakhapatnam district through a joint venture with Petronet LNG terminal.

The APGDC, which is a joint venture of Andhra Pradesh Gas Infrastructure Corporation and GAIL Gas Ltd, is keen on participating in the business of CGD (City Gas Distribution) networks; trunk pipelines, regional grids, CNG besides import and regasification of LNG.