The Andhra Pradesh government has initiated the bidding process for the development of a greenfield airport at Dagadarthi in Sri Potti Sriramulu Nellore district. The project, estimated at a cost of ₹648.59 crore, will be executed under the Public-Private Partnership (PPP) model on a design, build, finance, operate, and transfer (DBFOT) basis. The private firm selected through competitive bidding will enter into a 45-year concession agreement with the state government for the development, operation, and maintenance of the facility.
Land Allocation and Bidding Process
To facilitate the project, the government has earmarked 650 acres specifically for airport development and an additional 726 acres designated for commercial and city-side expansion. The initial expression of interest (EoI) proposal was issued on May 29, and prospective contractors have been permitted to submit their bids until June 12. Technical bids will be evaluated on June 12, while financial bids are scheduled to open on June 17, marking the final selection of the contractor. The winning bidder will receive the official letter of award within 15 days of finalisation.
Development Phases and Timeline
The ambitious project is mapped out across four development phases with an ultimate completion horizon extended up to the year 2070 to accommodate long-term traffic growth. The immediate focus remains on Phase-1(A), which the government aims to complete by the 2028-29 financial year. This initial phase encompasses the construction and management of core air-side infrastructure like the runway, alongside the passenger terminal building and land-side amenities including car parking and retail zones.
Strategic Importance and Connectivity
Nellore MP Vemireddy Prabhakar Reddy observed that the Dagadarthi airport is strategically positioned to serve as a massive boost for both passenger travel and cargo logistics across the combined districts of Nellore, Prakasam, Kadapa, and Chittoor. “Once operational, Phase-1 is expected to handle up to 2,282 passengers daily with a scheduled frequency of 27 flight movements, alongside a peak hour capacity of 799 passengers,” he added. For seamless connectivity, a dedicated link road will connect the airport directly to the vital Chennai-Kolkata National Highway. The project is fully cleared to move forward, having secured essential site clearances and environmental approvals from the ministry of civil aviation, ministry of defence, ministry of home affairs, and the ministry of environment, forest and climate change, Vemireddy Prabhakar Reddy asserted.
