The Andhra Pradesh government approved the development of the Bhogapuram Greenfield International Airport Project (Vizianagaram) on a public-private partnership (PPP) basis on June 19, 2018. Besides, the state government has approved a rate of Rs 3.3 million per acre as the compensation to landowners in order to acquire land for the project. The rate has been fixed excluding the value of trees and structures as agreed by the landowners for 27.87 acres in Gudepuvalasa village. The bids for the project, expected to be developed at an investment of Rs 13 billion, were earlier invited in 2017. The Airports Authority of India had emerged as the successful bidder; however, the bids were cancelled to expand the scope of the work to include the development of an aerocity, maintenance, repair and overhaul facilities, and an aviation academy.