The Andhra Pradesh government has terminated the concession agreement entered by the AP Airports Development Corporation Ltd. (APADCL) and the Nellore International Airport Private Ltd. for the development of a greenfield airport at Dagadarthi in Nellore district due to the failure of SCL-Turbo Consortium Pvt. Ltd. to achieve financial closure.
The project was awarded to the consortium on Design, Build, Finance, Operate and Transfer basis in September 2017 for developing the airport in 1,352 acres.
According to G.O. MS No.5 issued by special chief secretary (industries and commerce) R. Karikal Valaven, the agreement was signed on June 21, 2018 but the developer is yet to complete the financial closure, which should have been done by December 21, 2018.
Multiple extensions were granted up to July 15, 2019 which was more than one year from the date of signing of the concession agreement. After the above date, no extension of time was either sought or granted.
Besides, the land is not free from encumbrances and the lenders have not come forward to fund the project.
The G.O. further says as per the concession agreement, financial closure has to be achieved within the stipulated period and it is an independent obligation cast upon the developer and the same is not connected to handing over of the land by the APADCL, which stated that some portion of the land was made available for the project.