Rewind 2023: Bhogapuram Intl Airport a game-changer for Vizag

Investment & Tourist Destination

• Int’l Maritime Terminal to be commissioned soon
• GMR Group plans aero city near airport
• State govt to develop IT cluster on 500 acre

Visakhapatnam: The development of Bhogapuram International Airport (BIA) by the infra conglomerate GMR Group at Bhogapuram, about 40 km from Visakhapatnam on a fast-track mode is expected to be a game-changer.

The airport is expected to put Visakhapatnam on the global map as the most preferred investment destination as well as a much-acclaimed tourist spot with the International Maritime Terminal expected to be commissioned in the city early next year. The airport will give a big boost to the realty sector as the GMR Group plans to construct an aero city near the airport and the State Government wants to develop an IT cluster in an area of 500 acre.

The greenfield airport at Bhogapuram is envisaged with an investment of Rs 4,592 crore in the first phase. The total land area of the airport will be 2203.26 acres with the runway spread across 3,800 meters and a cargo terminal spread over 5,000 sq meters.

Though the first phase is scheduled to be completed in three years from the date of laying the foundation stone by Chief Minister Y S Jagan Mohan Reddy on May 3, the project proponent after taking possession of the land, has not only achieved financial closure but also entrusted the job of launching the construction work to L&T after awarding the EPC contract to it.

“We want it to be operational within the next two years ahead of schedule,” Industries Minister Gudivada Amarnath said after a recent visit to the project site to see the progress of construction.

The project will be developed in three phases. As per the DPR in the first phase, it will handle six million passengers per annum. In the subsequent phase, the capacity will go up to 12 million passengers. The phase-wise completion will depend on demand in passenger growth. Once fully operational, it will have a capacity to handle 40 million passengers.

Visakhapatnam International Airport, a civil enclave located on the INS Dega air station of the Indian Navy will be closed for 30 years from the date of commencement of operations of BIA. The civil enclave in the city now operates both civilian and defence flights. BIA, a part of the National Infrastructure Pipeline, is poised to become the largest airport in Andhra Pradesh. BIA is expected to provide vital infrastructure to deliver a world-class passenger experience in Andhra Pradesh while significantly enhancing air travel potential in the Visakhapatnam region.

The project is well positioned to boost connectivity and transportation infrastructure in northern Andhra Pradesh and also resonates with national priorities of strengthening air travel penetration and connectivity, especially to tier 2 and tier 3 cities. GMR Visakhapatnam International Airport Limited (GVIAL) is projected as an important engine of Andhra Pradesh’s economic development and growth over the medium to long-term.

GMR Airports Limited (GAL), a subsidiary of GMR Airports Infrastructure Limited, and NIIF (National Investment and Infrastructure Fund) recently entered into binding agreements for NIIF to invest up to Rs 6.75 billion in GVIAL, a special purpose vehicle to develop and operate the BIA.

The investment is part of the financial partnership announced on December 7, 2022 between the parties, in relation to investment by NIIF in the equity capital of three airport projects of GMR Airports Limited. This marked NIIF’s second airport investment, after its investment in GMR Goa International Airport Limited, which operates Manohar International Airport in Goa, was completed in April, 2023. GVIAL, in 2020, was awarded the concession to develop and operate the greenfield BIA under a 40-year Design-Build-Finance-Operate-and-Transfer model.