Andhra govt signs deal with GMR to build international airport at Bhogapuram

The Andhra Pradesh government and GMR Group have signed an agreement to build an international airport at Bhogapuram in the state.

The greenfield airport project to come up at Bhogapuram near Visakhapatnam is being developed as a crucial gateway to the northern part of Andhra Pradesh.

The agreement was signed on Friday in the presence of Chief Minister YS Jagan Mohan Reddy at his camp office by representatives of both sides.

While Special Chief Secretary, Industries, Kari Kalavan signed the pact on behalf of the state government, GMR Chairman, GBS Raju signed on behalf of GMR Airports Ltd (GAL).

The Bhogapuram airport project was cleared by the state government on Thursday. As against the original plan of providing 2,700 acres, the developer will now get 2,200 acres. The state government would be developing the remaining 500 acres.

The connectivity between Vizag and the airport will be developed and all steps will be taken for laying a Metro train line from the airport to the city, the Chief Minister said.

GMR, as per the concession agreement, has offered to pay Rs 303 per passenger fee (PPF) to the government reported The Hindu Businessline. GMR forecasts the number of passengers to be 3 million by 2021 and 9 million by 2036. 

The foundation stone for the Bhogapuram Airport development project was laid by the N Chandrababu Naidu led Telugu Desam Party (TDP) government in February 2019. The project costs an estimated Rs 42.1 billion. YSRCP leader Koyya Prasad in April had stated that work on the project will begin by August this year.

The GMR Group has handled several high profile projects, including Hyderabad and Delhi airports.

GMR representatives said that the airport will be developed as a landmark project in accordance with the Chief Minister's expectations. "We will take the services of international firms in the venture and the work will be completed at the earliest,” they said.

Industries Minister Mekapati Goutham Reddy and Chairperson of APIIC RK Roja were present on the occasion.