The Andhra Pradesh government would reportedly decide on the final project developer for the Shamshabad Airport Project by the middle of May 2001. This greenfield airport is coming up about 30 km from Hyderabad.

The task force that is investigating the bids has reportedly narrowed down its search to two consortia. These are led by Zurich Real Estate Consultants and Malaysian Airport Holdings.

The task force is being headed by Tata Economic Consultancy Services along with Speedwing, a division of British Consultants, and Crisil.

The first phase of the project, estimated to cost Rs.1,317.70 crore, is likely to be completed by 2010. This phase is expected to see the airport capacity reach 10 million passengers per year. This would increase further to 20 million passengers by the end of the second phase costing around Rs.367.70 crore. In the third and final phase, to be completed by 2050, the passenger handling capacity is expected to touch 40 million.

The government has already procured 2,000 acres of the required 5,000 acres of land for the airport project. The remaining land was expected to be acquired by March 2001. The government has allotted Rs.10 crore for land acquisitions and related issues.