The government has approved a proposal of the Andhra Pradesh government to set up a greenfield international airport at Shamshabad near Hyderabad through the joint venture route with public private partnership.

In this project the Airports Authority of India (AAI) has committed an equity contribution of 13 per cent, which has been capped at Rs50 crore. Based on a competitive bidding process, a consortium led by M/s. GMR Infrastructure Limited with Malaysian Airport Holding Berhard (MAHB) have been selected as the strategic joint venture parties holding 74 per cent equity in the JVC and 13 per cent equity is being held by government of Andhra Pradesh .

The project agreements executed are: (i) concession agreement (ii) state support agreement (iii) land lease agreement (iv) CNS/ATM agreement (v) airport operation and management agreement (vi) financing agreement and (vii)EPC agreements.

The estimated expenditure expected to be incurred on the project is to the tune of Rs1761 crore.

The completion time for the project is 36 months from the date of financial closure, achieved on 22 August 2005.