Cretum Advisory

Andhra Pradesh Civil Aviation Policy

Andhra Pradesh Civil Aviation Policy

Andhra Pradesh, a state rich in culture and industrial potential, has made tremendous strides in infrastructure development in recent years. One of the most ambitious initiatives is the Andhra Pradesh Civil Aviation Policy, which seeks to transform the state’s air connectivity landscape. With a clear focus on regional connectivity, airport infrastructure, and economic development, this policy is aligned with India’s broader aviation vision.

Andhra Pradesh Civil Aviation Policy
Andhra Pradesh Civil Aviation Policy

Objectives of the Andhra Pradesh Civil Aviation Policy

The state’s aviation policy was launched to complement the National Civil Aviation Policy and focuses on:

  • Enhancing regional air connectivity
  • Boosting aviation investments in the state
  • Developing air cargo infrastructure
  • Creating employment opportunities through aviation-related services
  • Supporting tourism, trade, and business

The policy lays a roadmap for developing greenfield airports, upgrading existing airstrips, and encouraging Maintenance, Repair, and Overhaul (MRO) facilities.

Strategic Need for Aviation Development in Andhra Pradesh

With major economic hubs like Vijayawada, Visakhapatnam, and Tirupati, Andhra Pradesh serves as a vital link between northern and southern India. However, the state lacked sufficient aviation infrastructure prior to this strategy, particularly in tier-2 and tier-3 cities.

The civil aviation policy aims to change this by:

  • Connecting underserved and unserved airports under the UDAN (Ude Desh ka Aam Nagrik) scheme
  • Attracting private investment for airport development
  • Increasing tourism in areas like Araku Valley and Papikondalu.

The Andhra Pradesh Civil Aviation Policy’s important features

1. Regional Connectivity Scheme (RCS) Alignment

The policy integrates seamlessly with the UDAN scheme promoted by the Ministry of Civil Aviation, Government of India. Several low-cost routes have been planned to connect remote towns and small cities within the state.

2. Development of Airports

The state intends to build many greenfield airports in areas such as:

  • Bhogapuram (Visakhapatnam)
  • Orvakal (Kurnool)
  • Dagadarthi (Nellore)
  • Donakonda (Prakasam)

These airports are expected to ease traffic congestion and stimulate economic zones around them.

3. Promotion of Air Cargo Infrastructure

To facilitate trade, the policy also emphasizes the creation of air cargo hubs, especially near industrial zones and Special Economic Zones (SEZs).

This includes:

  • Cold storage units for perishables
  • Export-oriented air freight corridors
  • Integration with rail and road logistics

3. Incentives for Private Participation

To attract private players, the state offers several incentives such as:

  • Capital subsidies for infrastructure
  • Concessional land leases
  • Single-window clearance for aviation projects
  • Reduced power tariffs and tax benefits

5. MRO and Aviation Training Centers

The goal of the policy is to lessen dependency on foreign services by promoting maintenance, repair, and overhaul (MRO) facilities.

It also proposes:

  • Aviation training academies
  • Aircraft engineering institutes
  • Simulation training for pilots

These initiatives are meant to create a skilled aviation workforce within the state.

6. Tourism and Religious Circuit Development

Given its religious and cultural heritage, Andhra Pradesh aims to boost spiritual tourism through air connectivity to places like:

  • Tirupati (temple tourism)
  • Srisailam (pilgrimage)
  • Visakhapatnam (coastal tourism)

By improving access, the policy supports both domestic and international tourism.

Economic Impact of the Aviation Policy

This progressive aviation framework will serve as a catalyst for economic development. Here’s how:

  • Job Creation: Thousands of direct and indirect jobs in aviation, logistics, hospitality, and retail.
  • Industrial Growth: Enhanced movement of goods, especially for pharma, seafood, and textiles sectors.
  • Investment Promotion: More PPP (Public Private Partnership) opportunities in aviation and related sectors.

Alignment with National Goals

The Andhra Pradesh Civil Aviation Policy resonates with India’s larger vision to become a global aviation hub. It supports goals such as:

  • 100+ operational airports under UDAN
  • Air cargo throughput growth
  • Reduction in logistics costs through multi-modal connectivity

Future Vision

The policy has a long-term vision of:

  • Making Andhra Pradesh a major hub for aviation in South India
  • Reducing travel time for business and leisure
  • Becoming self-reliant in terms of aviation services and infrastructure

With a robust implementation strategy, the state can expect increased foreign direct investment (FDI) and enhanced global connectivity.

 

The Final Thought: How Cretum Advisory Can Help

At Cretum Advisory, we offer end-to-end consulting services like GST, Startup Consulting, Company Law & Secretarial Compliance, and Accounting & Advisory Services for businesses and investors looking to explore opportunities under the Andhra Pradesh Civil Aviation Policy. Our expert team specializes in:

  • Regulatory approvals and compliance
  • Project feasibility studies
  • Aviation policy guidance and incentives
  • Legal, financial, and tax advisory
  • Strategic partnerships and funding assistance

Whether you’re looking to invest in airport infrastructure, set up an MRO unit, or benefit from aviation tax exemptions, we’re here to guide you at every step.

📩 Reach out to us at: info@cretumadvisory.com

 

Frequently Asked Questions (FAQs)

1. What is Andhra Pradesh’s Civil Aviation Policy?

The Andhra Pradesh Civil Aviation Policy is a strategic initiative by the state government to improve air connectivity, boost tourism, and attract aviation investments. It aligns with the national UDAN scheme to connect tier-2 and tier-3 cities.

2. What are the primary goals of this policy?

Its key goals include developing airports, enhancing regional connectivity, promoting air cargo hubs, and creating jobs in aviation and allied sectors.

3. What incentives are offered to private investors?

Incentives include land at concessional rates, capital subsidies, tax benefits, power tariff concessions, and single-window approvals.

4. What role do MRO facilities play in the policy?

Maintenance, repair, and overhaul (MRO) facilities are encouraged by the strategy in order to lessen dependency on outside services.

5. How does this policy support regional connectivity?

It supports regional connectivity by promoting UDAN routes, subsidizing operations in unserved areas, and upgrading airstrips into functional airports.

6. Which airports are planned under this policy?

The policy includes the development of greenfield airports in Bhogapuram, Orvakal, Dagadarthi, and Donakonda to increase access and reduce congestion.

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