Land acquisition clears way for Dagadarthi Airport project

After decades of anticipation, the long-pending Dagadarthi Greenfield Airport project in Nellore district is finally moving forward. The Andhra Pradesh government has resolved the major hurdle of land acquisition, paving the way for construction of the airport.

The state cabinet has approved the acquisition of 418.14 acres of permanent lease land at Damavaram village for the project. The land will be taken over by the Andhra Pradesh Airports Development Corporation Limited (APADCL). Orders to this effect were issued on Friday by M.T. Krishnababu, Special Chief Secretary, Infrastructure Department.

Based on a detailed report submitted by District Collector Himanshu Shukla, the government has finalized the compensation package. Permanent leaseholders will be paid ₹13 lakh per acre. In cases where lease rights have been transferred, compensation will be shared - 35% to the original leaseholders or their legal heirs and 65% to those who purchased the rights. The total land acquisition cost of ₹54.35 crore will be borne entirely by APADCL from its own funds. The government has also directed that the land in Survey No. 1/1 at Damavaram be taken over immediately.

The airport will be developed in three phases. The first phase will be implemented under the Public-Private Partnership (PPP) model at an estimated cost of ₹916 crore. The tender process for this phase is in its final stage, and a concession agreement with the selected developer will be valid for 15 years. A long-term master plan has also been prepared, with provisions to expand passenger and cargo facilities every 15 years based on demand.

Once operational, the Dagadarthi Airport is expected to benefit not only Nellore district but also neighboring districts such as Kadapa, Chittoor, Annamayya, and Tirupati. In addition to passenger services, the airport is set to play a key role in cargo movement, supporting industrial corridors and boosting tourism in the region. Experts believe the project could be a major catalyst for economic growth. Authorities are now preparing to complete the contractor selection process and launch construction work soon.