Vizag International Airport Development: GMR Gets Rs 4,000 Cr Funding

GMR has taken a loan of Rs 4,000 crore from India Infrastructure Finance Company (IIFCL), which is leading fund mobilization for its group. The money will be used for the construction of a greenfield international airport in Vizag, Andhra Pradesh.

The new airport will be built on the outskirts of Bhogapuram and will cover more than 2,200 hectares. Strategically located in the coastal commercial city, with a major port and steel mill, the project is part of GMR's efforts to expand its aviation business. This airport is expected to be the fourth largest airport in the country after Delhi, Hyderabad and Goa.

The IIFCL-led consortium is funding GMR's latest airport initiative, which will be rolled out in three phases, the first of which will accommodate six million passengers a year. Once completed, the airport is expected to play a crucial role in the development of the state and boost tourism in the northern region.

GMR and France-based Groupe ADP, which operates the three Paris airports, have a joint venture to build and operate airports. IIFCL has approved a 14-year loan and other lenders like REC, PFC and public sector banks are likely to be part of the banking consortium.