The proposed airport at Dagadarthi seem to have been shelved ostensibly due to high cost of lands in the region and not enough cooperation from owners of nearly 168 private lands to be acquired for the project.
There has been intense speculation that resulted in higher land prices at the airport project surroundings. This has made the task of district officials difficult to complete land acquisition and the government decided to take the extreme step.
You can take a look at the project history by clicking the link below:
Another practical reason for a change in decision seems to be commercial non-viability of the airport project site, being away from the port and many industrial zones that are on the other side of Penna river in the Nellore-Gudur-Naidupeta region.
Consequently, the government machinery is said to be scouting for a new 1200 acre site some where near Krishnapatnam, Sarvepalli and Venkatachalam region.