GMR receives LoA for Bhagapuram International Airport from Andhra govt

In February 2019, the company had emerged as the highest bidder for project on a public private partnership basis
GMR Airports Limited, a subsidiary of GMR Infrastructure Limited, on Monday announced that it has received the letter of award (LoA) for the development and operations of green-field International airport at Bhogapuram in Andhra Pradesh. The state government had proposed the green-field airport at Bhogapuram in Vizianagaram district as an alternative to the existing airport in Visakhapatnam. 

In February 2019, the company had emerged as the highest bidder for project on a public private partnership basis.


The project involves design, build, finance, construction, development, up-gradation, modernisation, operation and maintenance of the Bhogapuram Airport for the period of 40 years, extendable by additional 20 years through international competitive bidding process, with GMR Airport Limited having the right of right refusal of 10 per cent.

In the calendar year 2019, the existing civil enclave at Visakapatnam Naval Airfield handled 2.78 million passengers and 4,400 tonnes of cargo. Over the past five years the passenger traffic at the Vizag airport has grown at 21 per cent CAGR while the airport ranked fifth among the custom airports in India in terms of cargo traffic.

The proposed airport site lies on the border of Visakhapatnam and Vizianagaram districts, and is approximately 45 kms from the port city. "We are very happy to be partnering with government of Andhra Pradsh to develop, operator and manage the prestigious Bhogapuuram International Airport. We are excited about the potential of this region," GMR Airports Limited chairman GBS Raju said.


Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel