Andhra Pradesh Unveils Comprehensive Aviation Policy to Boost Private Investment
Andhra Pradesh Unveils Aviation Policy for Private Investment

In a major push to transform Andhra Pradesh into a leading aviation destination, the state government has unveiled a comprehensive aviation policy designed to attract large-scale private investment, expand airport infrastructure, improve air connectivity, and create a globally competitive aviation ecosystem.

Vision and Objectives

The policy aims to position Andhra Pradesh as the eastern gateway of India and one of the country's top destinations for aviation investments. It marks a significant shift towards private sector participation, opening up opportunities for infrastructure developers, construction companies, airport operators, logistics firms, aerospace manufacturers, and aviation service providers.

Most major airport projects proposed under the policy will be developed through public-private-partnership (PPP) models, enabling private players to bring in capital, expertise, and technology. Infrastructure and investments minister BC Janardhan Reddy stated, "The policy is driven by the vision of chief minister N Chandrababu Naidu and IT, electronics and education minister Nara Lokesh."

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Airport Expansion Plans

The state government plans to operationalise nine additional airports, including greenfield facilities at Amaravati, Dagadarthi, Kuppam, Palasa, Ongole, Tadepalligudem, and Anantapur, among other locations. It also intends to develop more than 10 waterdromes and heliports to improve regional connectivity and promote tourism. The long-term goal is to ensure airport access within 150 kilometres for people across the state.

Amaravati Airport: A World-Class Hub

A key highlight of the policy is the proposed Amaravati airport, which is envisioned as a world-class aviation hub capable of handling domestic and international transit traffic. The project will be pursued through a PPP model and is expected to become a major economic growth engine for the capital region.

Opportunities for Private Developers

The new aviation policy also provides substantial opportunities for private developers to build airport cities, logistics parks, cargo terminals, warehouses, hotels, convention centres, commercial complexes, and business parks around airports. Construction companies and infrastructure firms can help develop airports, aerotropolis projects, industrial parks, heliports, waterdromes, and supporting urban infrastructure. The state has also proposed land pooling, asset monetisation, and long-term lease models to facilitate large-scale investments in the aviation sector.

Focus on Aviation-Related Industries

Beyond airports, the policy focuses on developing aviation-related industries such as maintenance, repair and overhaul (MRO) facilities, aerospace manufacturing, cargo hubs, cold-chain infrastructure, and aviation training institutions. The Naidu-led government believes that the policy will strengthen tourism, logistics, exports, and industrial growth, while making the state a future-ready aviation hub powered by innovation, private investment, and modern infrastructure.

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