GMR Group signs agreement for developing Bhogapuram airport in AP

NEW DELHI: The GMR Visakhapatnam International Airport Limited (GVIAL) has signed the concession agreement for development and operation of a greenfield international airport at Bhogapuram with Andhra Pradesh the Government. GMR Airports Ltd (GAL) had this April received the letter of award for implementation of this project on a PPP basis.
GVIAL, a 100% subsidiary of GAL, will will design, build, finance, construct, develop, operate and maintain this greenfield international airport at Bhogapuram for 40 years, extendable by additional 20 years through international competitive bidding process, with GMR airports limited having right of first refusal of 10%.The airport will start with a phase-I capacity of 60 lakh passengers annually.
The proposed airport site is 45 km from Visakhapatnam. In calendar year 2019, the existing civil enclave at Vishakapatnam Naval Airfield had handled 27.8 lakh passengers and about 4,400 tonnes cargo. In last 5 years passenger traffic at the Vizag airport grew at 21% CAGR.
GBS Raju, business chairman of GMR Airports, said: “In line with our past record of creating world class infrastructure, including the iconic terminal 3 at Delhi International Airport and in line with the GMR Group’s long term commitment towards airports’ development, we aim to build a truly world class airport at Bhogapuram which would be a matter of pride for Andhra Pradesh and provide a further fillip to the economic potential of this region.”
SGK Kishore, GAL’s executive director – south and chief innovation officer, said: “Bhogapuram airport is a strategically located high potential airport. It will be a welcome addition to our growing portfolio of Indian and global airports and strengthens the airport platform of GMR Airports. We eagerly look forward to completing the formalities and commence the construction.”