Realtors line up to build airports

K V Ramana / TNN / Apr 10, 2008, 02:07 IST

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Inspired by GMR group's example, 37 construction companies and realty firms have expressed their interest in airport projects being planned by the Andhra government.

HYDERABAD: The flavour of the season is building airports. Perhaps inspired by GMR group's example, 37 construction companies and realty firms have expressed their interest in airport projects being planned by the Andhra Pradesh government in various districts.
The government had recently floated pre-qualification bids for brand new airports at 11 locations: Nellore, Ongole, Kothagudem, Ramagundam, Nizamabad, Vizianagaram, Tadepalligudem, Kurnool, Adilabad, Srikakulam and Guntur.
The project will be handed over on a build-operate-transfer (BOT) mode.
"Except GMR, which has shown interest in three airports, not many bidders have experience in handling airport projects. So, the selection and vetting process for finalising bidders is going to be difficult for the government," an official source told TOI.

Apart from GMR, other bidders include Mayatas (who have recently been awarded the contract to modernise Gulbarga and Belgaum airports along with Nagarjuna Constructions and Vienna Airports Company), Lanco, Indu Projects, IVRCL, Gayatri Constructions, Ramky Group, Soma Constructions and Navayuga.
Unlike the international airport, these projects are meant for small aircraft and the runway would not exceed 2,500 metres. Each airport would be built in about 300-500 acres and, as per government estimates, each project would not cost more than Rs 100 crore.
"Minor airports should be looked from the angle of promoting a hub and spoke model. Towns with sizeable population and at a distance of 100-150 km from the airport hub would benefit in future. Development of industrial clusters and real estate around such airports would make them attractive and viable," Lanco Infratech MD G Venkatesh Babu said.

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