GMR Airports Limited (GAL), which is a subsidiary of GMR Infrastructure Limited, has emerged as the highest bidder for the development, operations, and management of the greenfield airport at Bhogapuram in Vizag, on a Private Public Partnership (PPP) mode. The project involves design, build, finance, construction, development, up-gradation, modernisation, operation and maintenance of the Bhogapuram airport for a period of 40 years.
The airport at Bhogapuram, which will be developed over 2,703 acres will be integrated with Aerocity, a Maintenance, Repair, and Overhaul (MRO) facility, and an Aviation Academy. Andhra Pradesh Airports Development Corporation Limited (APADCL) had initiated the Request for Proposal (RFP) process for the new airport in November 2018. Eventually, APADCL had shortlisted GMR Group, GVK, DoIt Infra, I-Investment, NIIF, Essel and Reliance Infra among the applicants.
As reported by Times of India, GMR offered a revenue share of Rs 303 per passenger with the government, while DoIt Infra offered Rs 261 and GVK offered Rs 207.
GBS Raju, Business Chairman, GMR Group, said that the Bhogapuram Airport win will add to the portfolio of airports developed, maintained and operated by GMR Airports. He further said that the group looked forward to working on the prestigious project and aim to deliver an airport of global standards which would be a matter of pride for the region of Visakhapatnam.
The need for a new airport was felt given the limitations of the Visakhapatnam airport, which belongs to the Indian Navy. It may be noted that the foundation stone of the Bhogapuram airport was laid recently by Andhra Pradesh Chief Minister Chandrababu Naidu during his visit to Vizag. Speaking at the event, the Chief Minister said that the new airport would help in the economic development in the districts of Visakhapatnam and Vizianagaram.