Monday, August 8, 2022

GMR Visakhapatnam International Airport Limited (GVIAL) signs concession agreement for Bhogapuram airport

* GVIAL to operate and maintain the Bhogapuram airport for 40 years and extendable by 20 years
* Initial capacity (Phase-1) of the airport to be six million passengers per annum

GMR Visakhapatnam International Airport Limited (GVIAL), a 100% subsidiary of GMR Airports Ltd (GAL), today announced that it has signed the Concession Agreement for the development and operations of Greenfield international airport at Bhogapuram in Andhra Pradesh with the Government of Andhra Pradesh. In April 2020, GAL had received the Letter of Award for implementation of project on a PPP basis.

The project involves design, build, finance, construction, development, operation and maintenance of Greenfield International Airport at Bhogapuram for the period of 40 years, extendable by additional 20 years through international competitive bidding process, with GMR airports limited having RoFR (Right of First Refusal) of 10%.

In calendar year 2019, the existing civil enclave at Vishakapatnam Naval Airfield has handled 2.78 million passengers and ~4400 Tons cargo. Over the past 5 years the passenger traffic at the Vizag airport has grown at 21% CAGR while the Airport ranks 5th amongst the custom airports in India in terms of Cargo traffic.

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The proposed Greenfield airport site lies on the border of Visakhapatnam and Vizianagaram districts, and is approximately 45 kms from Visakhapatnam through NH-5 and 25 kms from Vizianagaram via NH-43. The site is strategically located on the east coast and is stands to get benefit from the vast catchment area surrounding the region. Moreover, 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.

GBS Raju, Business Chairman, GMR Airports said, “We are very happy to be partnering with Government of Andhra Pradesh to develop, operate and manage the prestigious Bhogapuram International Airport. 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 the State of Andhra Pradesh and provide a further fillip to the economic potential of this region.”

SGK Kishore, Executive Director – South & Chief Innovation Officer, GMR Airports Limited added: “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.”

About GMR Infrastructure Limited (GIL)

GMR Infrastructure Limited, a leading global infrastructure conglomerate with interests in Airport, Energy, Transportation and Urban Infrastructure, is listed on Indian Stock Exchanges.

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