The Andhra Pradesh Government on 23 June 2011 issued orders to hand over land to the AAI for development of Tirupati airport in the state.
 
The state government has issued order to hand over 702 acre to the AAI. The board of directors of the AAI has already sanctioned Phase I development of the airport for upgrading the facility into an international airport with modern amenities. AAI will be spending an estimated Rs 300 crore for the proposed works. The state government has also sanctioned Rs 100 crore to the district administration towards acquisition of the said land.
 
Under Phase I, a new integrated terminal building complex with all modern amenities and facilities including two aero bridges capable of handling 700 domestic and international passengers, will be built. In addition, the authority proposes to extend the runway to 3,270 mtrs from the present 2,286 mtrs.

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