Expansion of Deoghar airport to be undertaken with investment of Rs 300 cr

Ranchi, Mar 21: The state government is committed for the expansion of
the Deoghar Airport and as part of the plans an agreement (MoU) would
be inked between DRDO, AAI and the Jharkhand Government on March 25.
The expansion of the Deoghar airport would be undertaken with an
investment of Rs 300 crore. The airport is situated on 53.41 acres of
land, the state government would be providing 600.9 acres of land to
the AAI on lease for a period of 30 years which means that on 654.31
acres of land, the flying strip,  terminal buildings, parking, cargo
complex, airport residential area, city side facility apron, taxiway
airside facilities alongwith other facilities would be provided.
Out of the Rs 300 crore, Rs 200 cr would be borne by DRDO, Rs 50 cr by
State Government and Rs 50 cr by the AAI. The airport would be used
for operating A-320 commercial plans and C-130 air force planes. The
state government would also bear the cost of acquisition of 437.70
acres of land for which compensation worth Rs 426.66 crore would be
distributed. The state government will paying for the losses to the
AAI till it reaches the break even point, thereafter in case of loss
and profit both would be making 50:50 payment.
AAI would provide arrangements for air traffic service, rescue and
fire fighting and communication. The state government would provide
arrangements for peripheral security free of cost while DRDO would
provide equipments for day and nigh operating of flights. A JV would
be formed between the state government and the AAI in the ratio 49:51.
The AAI would make the airport fully operational within two years of
complete transfer of land and as the deal the state government would
provide free of cost power to AAI for the first five years.

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