GMR Infrastructure has received the Andhra Pradesh government’s approval for developing a greenfield international airport at Bhogapuram, near Visakhapatnam. The development of a new international airport at Bhogapuram was first proposed in 2014 post bifurcation of the state but was kept in cold storage for nearly six years.
The GMR group did not respond to queries on the nature of the project or investment details. However, the state government had earlier said the project would have a capacity to handle about 18 million passengers per annum, when completed over three phases.
While Phase one was estimated to cost about Rs 2,700 crore, the total project cost could be over Rs 4,200 crore. Local reports say that as per the latest development model, GMR has offered to pay Rs 303 per passenger fee (PPF) to the government.
“The state cabinet meeting approved a proposal to develop the Bhogapuram airport on the public-private partnership mode and approved the highest bid offered by GMR,” Perni Venkataramaiah, information and public relations minister, said. “Initially, it was proposed to develop the airport on 2,703 acres, but now we have decided to give only 2,200 acres to GMR for the purpose.
The remaining part of the land will be developed by the state government,” he said. He added the cabinet decided to go ahead with GMR as it did not involve any monetary commitment on the part of the government.
The airport would be a world class international airport with one runway, parallel taxiway and other infrastructure capable of servicing world’s largest aircraft.