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Andhra Pradesh cancels tender process for Bhogapuram project in which AAI pipped GMR

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The Andhra Pradesh government has cancelled the entire tender process in which the Airports Authority of India (AAI) had emerged as the winner for the proposed Bhogapuram Aerotropolis project in Vizianagaram district last year.

The state Cabinet, which met under the chairmanship of Chief Minister N Chandrababu Naidu , took the decision to develop the new greenfield airport under the public-private partnership mode.

“Across 2,703 acres, the scope of Bhogapuram Airport will be expanded from a mere airport to an integrated airport with Aerocity, maintenance, repair and overhaul (MRO), Aviation Academy, etc.,” an official release said today.

Besides AAI, GMR Group was the only other contender for the airport project.

GMR had offered a revenue share of 21.6 per cent.

Asked why the tenders were cancelled after the AAI emerged as the winner in August 2017, offering 30.2 per cent revenue share to the state government, Principal Secretary (Energy, Infrastructure and Investment) Ajay Jain told they wanted to go for development of an “Integrated Airport”.

“The scope of the project has been expanded. That’s the only reason,” he added.

The international airport was proposed to be developed three years ago at a cost of over Rs 2,200 crore, 40-km from port city Visakhapatnam, as it did not have a civilian airport.

The current airport in Visakhapatnam belongs to the Indian Navy.

Land acquisition for the airport was also not complete as only 2210 acres of the total 2703 acres for the first phase is in government possession.

Asked about the possible further delay in the project, the Principal Secretary said it might stretch by 3-4 months.

“We will invite fresh bids and in the meantime land acquisition will also be complete,” he added.

Bhogapuram International Airport Company Ltd. (BIACL) was formed as the SPV (special purpose vehicle) by the government of Andhra Pradesh.


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