The Centre is responding to Hyderabad's aviation needs quickly as it is one of the fastest growing cities in the areas of information technology, biotechnology and other knowledge-based industries, union secretary for Civil Aviation Ajay Prasad said today.

Speaking to reporters after attending the 'First Concrete Pour' (launching of civil works) ceremony of the Rs 615-crore Passenger Terminal Building (PTB) of the Hyderabad International Airport at Shamshabad near here, he said the Centre had increased connectivity to the city substantially.

"International flights from South East Asia, US and the UK are coming to Hyderabad and the air traffic was growing at 22 per cent per annum," he said. With more foreign and domestic airlines evincing interest in flying to Hyderabad, the Centre was telescoping the second phase of the Shamshabad project by merging it with first phase to handle seven million passengers per annum.

To a question, he said a couple of States had approached the Civil Aviation Ministry with proposals to start their own regular airlines though AP was not among them.

"Such a request when it comes will be considered on merit," he said.

Chief secretary T K Dewan said the State Government had provided Rs 800 crore for the developers, including 5500 acres for the airport.

Hyderabad International Airport Limited managing director Kiran Kumar Grandhi. said the PTB would be ready within a year and the runway by June 2007. The physical work would be over by December 2007. Testing, trials and certification would be completed by March 2008 and the airport would start its commercial operations later.

The PTB works contract was awarded to Hong Kong-based China State Construction Engineering Limited. The works include construction of the complex on over one lakh square metres, Air Traffic Control (ATC) tower, passenger boarding systems, lifts and escalators, baggage handling system, information technology and security systems.