GVIAL inks concession agreement for development of Bhogapuram Airport
In April, had received the LoA for implementation on PPP basis
GMR Visakhapatnam International Airport (GVIAL), a 100 percent subsidiary of GMR Airports (GAL), has inked concession agreement with the government of Andhra Pradesh for development and operations of greenfield international airport at Bhogapuram in Andhra Pradesh.
In April 2020, GAL had received the letter of award (LoA) for implementation of the project on PPP basis.
The project involves design, build, finance, construction, development, operation and maintenance of greenfield international airport at Bhogapuram for a period of 40 years, extendable by additional 20 years through international competitive bidding process, with GMR Airports having RoFR of 10 percent.
The existing civil enclave at Visakhapatnam Naval Airfield has handled 2.78 million passengers and around 4,400 tonne cargo in 2019.
Over the past five years the passenger traffic at the Visakhapatnam airport has grown at 21 percent CAGR while the airport ranks 5th amongst the custom airports in India in terms of cargo traffic.
The proposed greenfield airport site lies on the border of Visakhapatnam and Vizianagaram districts, and is approximately 45 km from Visakhapatnam through NH-5 and 25 km from Vizianagaram via NH-43.
The beach corridor development is underway in proximity to the proposed international airport in Bhogapuram which will provide impetus to retail and hospitality developments in the region.