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GMR to develop greenfield airport at Bhogapuram, inks pact with State govt

V Rishi Kumar Hyderabad | Updated on June 12, 2020 Published on June 12, 2020

GMR Infrastructure Limited will develop a greenfield airport at Bhogapuram near the port city of Visakhapatnam.

An agreement to this effect was inked today in the presence of Andhra Pradesh State Chief Minister YS Jagan Mohan Reddy, Industries Minister M Goutham Reddy and GBS Raju of GMR Group.

Special Chief Secretary Industries and Commerce, R Karikal Valaven and Raju on behalf of GMR.

The diversified infrastructure company, which has developed marquee projects including the Hyderabad and Delhi airports, has assured the Government that the new airport will serve as a landmark in the State. Like in other airports, services of some of the leading global partners will be engaged to complete the project.

The airport is seen to serve as a gateway for the northern part of the State connectivity to the airport from Vizag will also be developed. A metro link to the airport is also under consideration.

During the Cabinet meeting held yesterday, the Bhogapuram airport project was accorded approval. As against 2,700 acres which was to be handed over for development of the airport, now GMR will get 2,200 acres and the rest 500 acres will be with the State government for development.

As per the concession agreement, GMR has offered to pay ₹303 per passenger fee (PPF) to the government. The number of passengers is forecast to be 3.1 million by 2021 and nine million by 2036.

It may be recalled that GMR had won the bid in February 2019, after the State government cancelled the earlier bid process by the previous regime. GVK and another consortium had also bidfor the project.

The Airport Authority of India had won the previous bid which was cancelled.

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Published on June 12, 2020
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