AP Govt and GMR Group sign agreement for Bhogapuram airport development

The Andhra Pradesh Government, on Friday, signed an agreement with the GMR Group for the development of an international greenfield airport at Bhogapuram near Vizag. A concession agreement was officially reached between the representatives of the State Government and the GMR Group, at Tadepalli, in the presence of Andhra Pradesh Chief Minister YS Jagan Mohan Reddy. Andhra Pradesh Industries Minister Mekapati Goutham Reddy and AP Industrial and Infrastructure Corporation Chairperson R K Roja were also present on the occasion.

Announcing the same, Minister Mekapati Goutham Reddy tweeted, “GMR Group enters into an agreement with our AP Govt for development of Bhogapuram Airport. Representatives from both the sides, today exchanged terms of the agreement in the presence of Hon’ble Chief Mnister YS Jagan.”

On Thursday, the Andhra Pradesh cabinet, which met under the chairmanship of CM YS Jagan, decided to take back 500 acres, from the total 2700 acres of land, allotted to the group for the development of Bhogapuram airport. After the meeting, Andhra Pradesh Information and Public Relations Minister Perni Nani said that the airport will be constructed over 2200 acres while the remaining 500 acres will be taken over by the State Government as commercial space.

In February 2019, GMR Airports Limited (GAL), which is a subsidiary of GMR Infrastructure Limited, was handed over the responsibility of developing the greenfield airport at Bhogapuram after it emerged as the highest bidder. The project involves the design, build, finance, construction, development, up-gradation, modernisation, operation and maintenance of the Bhogapuram airport for a period of 40 years.

In March this year, the YS Jagan Mohan Reddy-led government in Andhra Pradesh, after approving the highest bid offered by the GMR Group, gave its nod to develop the Bhogapuram airport in the Public-Private Partnership mode.