GMR Infra arm gets LoA to develop Bhogapuram airport in Andhra Pradesh

GMR Infrastructure on 13 April 2020 said its subsidiary, GMR Airports, received letter of award for the development and operations of Bhogapuram Airport in Andhra Pradesh.

GMR Airports (GAL) has received the Letter of Award (LoA) for the development and operations of Greenfield international airport at Bhogapuram in Andhra Pradesh from the Government of Andhra Pradesh. In February 2019, GAL had emerged as the highest bidder for project on a public-private partnership (PPP) basis.

The project involves design, build, finance, construction, development, up-gradation, modernization, operation and maintenance of Greenfield International Airport at Bhogapuram for the period of 40 years, extendable by additional 20 years through international competitive bidding process, with GMR airports limited having RoFR of 10%.

GBS Raju, Business Chairman GMR Airports 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."

In calendar year 2019, the existing civil enclave at Vishakapatnam Naval Airfield has handled 2.78 million passengers and ~4400 tons cargo. Over the past 5 years the passenger traffic at the Vizag airport has grown at 21% CAGR while the airport ranks 5th amongst the 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 Visakhapatnam through NH-5 and 25 kms from Vizianagaram via NH-43. The site is strategically located on the east coast and is stands to get benefit from the vast catchment area surrounding the region. Moreover, the 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.

GMR Infrastructure reported a consolidated net loss of Rs 280.74 crore in Q3 December 2019 as compared to a net loss of Rs 561.04 crore in Q3 December 2018. Net sales in the December quarter rose 7.61% Y-o-Y to Rs 1,990.76 crore.

GMR Infrastructure is a leading global infrastructure conglomerate with interests in airport, energy, transportation and urban infrastructure.

Shares of GMR Infrastructure declined 1.20% at Rs 16.50. The scrip hovered in the range of Rs 16.40 to Rs 17 so far.

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