 Due to its convenient location near two highways (NH 44 and NH 765) and a railway line, Shamshabad was selected in December 1998.In November 2000, under the N. Chandrababu Naidu government and the Airports Authority of India (AAI) signed a memorandum of understanding on the greenfield airport project, establishing it as a public–private partnership.The State and AAI together would hold a 26% stake in the project, while the remaining 74% would be allotted to private companies.