GMR Airports Ltd emerges as the highest bidder for Greenfield Airport at Bhogapuram in Andhra Pradesh

GMR Airports Limited (GAL), a subsidiary of GMR Infrastructure Ltd, has emerged as the highest bidder for the Development, Operations and Management of Greenfield International Airport at Bhogapuram, Andhra Pradesh (AP) on a PPP basis.

Andhra Pradesh Airports Development Corporation Limited (APADCL), had initiated the RFP process for new airport at Bhogapuram in November 2018. The project involves design, build, finance, construction, development, up-gradation, modernization, operation and maintenance of the Bhogapuram airport for a period of 40 years. As part of the qualification process, APADCL had shortlisted seven applicants viz GMR Group, GVK, Dolt Infra, I-Investment, NIIF, Essel and Reliance Infra. However only GMR Group, GVK and Dolt Infra submitted their financial bids.

In Calendar Year 2018, the existing civil enclave at Vishakapatnam Naval Airfield has handled 2.33 mn passengers and nearly 5000 Tons cargo. Over the past 4 years the passenger traffic at the Vizag airport has grown at 14% 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 km from Vizianagaram via NH-43. The site is strategically located on the east coast and stands to get benefitted 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.

Mr. GBS Raju, Business Chairman, GMR Group said, "It is a matter of great pride for us as Bhogapuram Airport win will add to the ever growing portfolio of Airports developed, managed and operated by GMR Airports. We look forward to work on this prestigious airport and will aim to deliver an airport of global standards which would be a matter of pride for the region of Visakhapatnam and provide a further fillip to the economic potential of Andhra Pradesh."

Mr. GBS Raju further added: "The win has reinforced the position of GMR Airports Ltd. as a major global airport operator. We look forward to receive letter of award shortly."

Shares of GMR INFRASTRUCTURE LTD. was last trading in BSE at Rs.16.3 as compared to the previous close of Rs. 16.4. The total number of shares traded during the day was 1450206 in over 1007 trades.

The stock hit an intraday high of Rs. 16.35 and intraday low of 15.85. The net turnover during the day was Rs. 23427502.

Source : Equity Bulls

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