Andhra govt inks deal with GMR for development of Vizag airport, CM proposes metro for connectivity
CM YS Jaganmohan Reddy said that a metro line will be set up to connect the Bhogapuram international airport to Visakhapatnam city.
Andhra Pradesh government and the GMR group have signed an agreement for the development of the Bhogapuram International Airport in Visakhapatnam. At present, the Vizag airport is operated by the Airport Authority of India (AAI) and also houses the Indian Navy's Dega base.
The agreement was signed in the presence of Chief Minister YS Jaganmohan Reddy at his camp office. Special Chief Secretary (Industries) Kari Kalavan inked the pact on behalf of the Andhra government while GMR Chairman GBS Raju was the signatory from the side of GMR Airports Ltd (GAL).
CM YS Jaganmohan Reddy said that airport connectivity will be looked after and the government is looking to set up a metro train line linking the airport to the city.
The agreement between the Andhra government and GAL involves the design, building, finance, construction, development, operation and maintenance of Greenfield International Airport at Bhogapuram for a period of 40 years, extendable by additional 20 years through an international competitive bidding process, with GMR airports limited having RoFR (Right of First Refusal) of 10 per cent.
In 2019, the existing civil enclave at Vishakapatnam Naval Airfield handled 2.78 million passengers and 4,400 tons cargo. Over the past five years, passenger traffic at the Vizag airport has grown by 21 per cent (compound annual growth rate) while the airport ranks fifth amongst custom airports in India in terms of cargo traffic.
The proposed Greenfield airport site lies on the border of Visakhapatnam and Vizianagaram districts and is approximately 45 kms from Vizag city through NH-5 and 25 kms from Vizianagaram via NH-43.
Located strategically on the east coast, it stands to benefit from the vast catchment area surrounding the region.
Moreover, beach corridor development is underway in proximity to the proposed international airport in Bhogapuram which will provide impetus to retail and hospitality developments in the region.