GMR Infrastructure on Monday said one of its subsidiary has received "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 greenfield international airport at Bhogapuram from the government of Andhra Pradesh.
In February 2019, GMR Airports had emerged as the highest bidder for project on a public–private partnership basis.
The project involves design, build, finance, construction, development, up-gradation, modernization, operation and maintenance of Bhogapuram International Airport for 40 years, extendable by 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 cargo.
Over the past five years, the passenger traffic at the Vizag airport has grown at 21 per cent CAGR while 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 it stands to get benefit from the vast catchment area surrounding the region, the filing said.
"We are very happy to be partnering with 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 said.
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