GMR gets AP Cabinet nod to developgreenfield Bhogapuram airport

Our Bureau Hyderabad | Updated on March 05, 2020

The GMR Group has secured the Andhra Pradesh Cabinet approval for developing the greenfield Bhogapuram International Airport about 35 km from Visakhapatnam.

The State Cabinet, chaired by Chief Minister YS Jagan Mohan Reddy, approved the development of the Bhogapuram airport, which was earlier cleared for development under the public-private-partnership (PPP) mode.

In February 2019, the diversified infrastructure company GMR had become the successful bidder outbidding GVK and Doit offers. The process was based on revenue share model and the project cost was then pegged at ₹2,700 crore, to be completed in 36 months.

To be developed in phases, the total project cost was estimated at ₹4,208 core and of this ₹2,700 crore was to be invested in phase-I.

GMR will now be allocated 2,200 acres, as against 2,703 acres, which was approved to be allotted earlier. The remaining land parcels will be developed by the State.

PPP mode

Though the airport project was to be taken up during the previous regime, not much progress could be made apart from approving the contract to GMR in February 2019.

Now, with the Jagan Mohan Reddy Government deciding to make Vizag one of the three capital cities in the State, the new airport project is likely to be expedited.

Efforts are also on to work towards paving way for developing a metro line link to the airport.

Significantly, in the first tenders invited by the previous Chandrababu Naidu regime, the Airports Authority of India had pipped private developers, including GMR.

However, the State Government then invited fresh tenders adding additional facilities during the airport development, including a maintenance, repair and overhaul (MRO) facility. And GMR won the mandate outbidding others.

After assuming office, the YS Jagan Government cancelled several contracts awarded by the Naidu regime and decided to invite fresh tenders for projects. Significantly, this is the only major project which the new government has given the go ahead and now provided Cabinet nod.

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Published on March 05, 2020
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