GMR Visakhapatnam International Airport Limited (GVIAL), a 100 per cent subsidiary of GMR Airports Limited, today announced that it has signed a Concession Agreement for the development and operations of a greenfield international airport at Bhogapuram, Andhra Pradesh, with the state government. The company had received the letter of award for implementing the project in April.
The project involves design, finance, construction, development, operation and maintenance of the airport for a period of 40 years, extendable by another 20 years through an international competitive bidding process in which GMR Airports Ltd would have the right of first refusal of 10 per cent.
The proposed greenfield airport site lies on the border of Visakhapatnam and Vizianagaram districts and is about 45 km from the port city. According to the developer company, the site is strategically located on the east coast and stands to get benefit from the vast catchment areas surrounding the region. The beach corridor development is also underway in proximity to the proposed international airport potentially contributing to the retail and hospitality developments in the region.
The existing airport at Visakhapatnam is a civilian enclave of the Vizag Naval Airfield. Last year this airport has handled 2.78 million passengers.
GMR Airports Limited chairman (Business) GBS Raju said the airport at Bhogapuram would be matter of pride for Andhra Pradesh and would provide a further fillip to the economic potential of the region.