GMR Infrastructure on Monday said one of its subsidiaries has received a "Letter of Award" (LoA) for the development and operations of Bhogapuram International Airport in Andhra Pradesh.
In a regulatory filing, GMR Infrastructure said its subsidiary -- GMR Airports Limited -- has received the LoA for the development of a greenfield international airport at Bhogapuram from the government of Andhra Pradesh.
In February 2019, GMR Airports Limited had emerged as the highest bidder for the project on a public–private partnership (PPP) basis.
The project involves design, build, finance, construction, development, upgradation, modernisation, operation and maintenance of Bhogapuram International Airport for 40 years, extendable by an additional 20 years.
In the calendar year 2019, the existing civil enclave at Visakhapatnam Naval Airfield has handled 2.78 million passengers and around 4400 tons of cargo.
Over the past five years, the passenger traffic at the Vizag airport has grown at 21% CAGR (compounded annual growth rate). The airport ranks 5th amongst the custom airports in India in terms of cargo traffic.
The proposed greenfield airport site is strategically located on the east coast, and stands to benefit from the vast catchment area surrounding the region, the filing said.
According to The Hindu, the airport site is located on the border of Visakhapatnam and Vizianagaram districts, at a distance of about 45 km from Visakhapatnam, and 25 km from Vizianagaram.
GMR Airports also said that the ongoing development of the beach corridor, which is also close to the site will boost retail and hospitality industries in the region, according to The Economic Times.
"We are very happy to be partnering with the government of Andhra Pradesh to develop, operate and manage the prestigious Bhogapuram International Airport. We are excited about the potential of this region," said GBS Raju, Business Chairman GMR Airports.