GMR subsidiary signs agreement to build new Indian airport

GMR Airports Ltd (GAL) today confirmed that that one of its wholly-owned subsidiaries has signed an agreement with the government of Andhra Pradesh to build and develop a new greenfield  airport at Bhogapuram.

The airport will be designed, financed, built and operated by GMR Visakhapatnam International Airport Limited (GVIAL) in exchange for a 40 year concession, which is potentially extendable by an additional 20 years.

It is designed to replace the existing airport at the civil enclave at Vishakapatnam Naval Airfield which handled 2.78 million passengers and 4,400 tons of cargo in 2019.

GMR notes that passenger traffic at Vizag Airport has grown at 21% CAGR over the last five years while the airport is India’s fifth biggest cargo airport for cargo traffic.

The proposed greenfield airport site lies on the border of Visakhapatnam and Vizianagaram districts, and is approximately 45 kilometres from Visakhapatnam and 25 kilometres from Vizianagaram.

According to GMR, the site is strategically located on the east coast and is stands to benefit from a vast catchment area, which is set to grow as a holiday and retail destination in the next decade.

GMR Airport’s business chairman, GBS Raju, says: “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, 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.”

GAL’s executive director – south and chief innovation officer, SGK Kishore, says: “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.”