Bhogapuram airport: North Andhra’s new economic engine

As of the last quarter of 2025, Bhogapuram airport has achieved up to 90 per cent overall completion, with the runway nearly 97 per cent finished and the taxiways by 92 per cent. A validation flight in December will mark a major milestone, testing key systems before full-scale operations begin. According to GMR Group’s leadership, the project is running six months ahead of earlier projections, underlining the strong government-market synergy driving this development.

North Andhra is on the cusp of a historic transformation. The upcoming Alluri Sitarama Raju international airport at Bhogapuram, being developed by GMR Visakhapatnam International Airport Limited (GVIAL), is emerging as the single most powerful catalyst for economic resurgence across Visakhapatnam, Vizianagaram, and Srikakulam districts. With construction progressing at remarkable speed and operations set to begin by June, the airport is poised to redefine the region’s future in aviation, tourism, industry, and urban development.

A modern gateway rising ahead of schedule:

As of the last quarter of 2025, Bhogapuram airport has achieved up to 90 per cent overall completion, with the runway nearly 97 per cent finished and the taxiways by 92 per cent. The terminal building, already 79 per cent completed, is taking shape as a modern, energy-efficient structure designed for global standards.

A validation flight in December will mark a major milestone, testing key systems before full-scale operations begin. According to GMR Group’s leadership, the project is running six months ahead of earlier projections, underlining the strong government-market synergy driving this development.

Phase I alone entails an investment of ₹4,592 crore. It will be capable of handling six million passengers annually, with future expansion targeting 18 MPPA.

Tourism: Opening the gates to global footfall:

The region’s immense tourism potential—its serene coastline, Araku’s rolling hills, Buddhist heritage sites, and tribal culture—has long been overshadowed by inadequate international connectivity. Bhogapuram airport will change that perception profoundly.

♦ Direct international flights will make Visakhapatnam–Araku–Srikakulam a seamless multi-destination circuit for global tourists.

♦ Hotel chains such as Oberoi and Taj are exploring new properties around the airport zone.

♦ The greater Vizianagaram–Bheemunipatnam stretch is poised to become a premium hospitality corridor.

Local businesses—from tour operators to artisans—are expected to witness significant demand growth, making tourism one of the biggest beneficiaries of the airport’s operationalisation.

Logistics and aerospace: A new industrial frontier:

With a 5,000 sq. meter cargo terminal and dedicated perishable handling facilities, Bhogapuram is set to become the logistics heart of north Andhra. The region’s export profile—seafood, textiles, cashew, pharmaceuticals—stands to gain exponentially from reduced transit times and direct international cargo connectivity.

The most ambitious component is the world’s largest Maintenance, Repair and Overhaul (MRO) facility, planned on a massive 25-acre footprint within a 500-acre aerospace ecosystem. This initiative aims to attract global aviation and defence manufacturers, positioning Bhogapuram as a major aerospace hub on India’s East Coast.

The MRO facility alone is expected to generate thousands of skilled jobs, catalysing an aviation ecosystem that has so far been absent in this geography.

IT & Electronics: Powering the ‘East California’ vision:

The government’s aspiration to develop Visakhapatnam into an “East California”—a technology and innovation hub—is closely linked to world-class air connectivity. Bhogapuram Airport strengthens this vision through:

♦  Improved access for global IT executives and investors.

♦ Better integration with proposed Google AI initiatives and new tech clusters.

♦ Opportunities for manufacturing electronics owing to faster cargo movement and proximity to major national markets.

North Andhra has traditionally been behind Hyderabad and Bengaluru in tech-driven growth. Bhogapuram is expected to narrow that gap meaningfully.

Real estate: The airport-led growth corridor:

Large infrastructure projects invariably create real estate ripples—and Bhogapuram is no exception. Land values along the Anandapuram–Bheemunipatnam–Bhogapuram corridor have already surged, and experts anticipate a 25–40% appreciation post-launch.

VMRDA is complementing this growth with:

♦ A proposed six-lane beach corridor connecting Vizag city to the airport.

♦ Enhanced internal road networks across 15 major stretches.

♦ Plans for metro connectivity, theme-based townships, education hubs, and wellness zones. The region is rapidly evolving into a multi-nodal urban cluster that will support both residential and commercial expansion for decades.

A new era of job opportunities:

Phase I of the airport alone is projected to create around 5,000 direct jobs, with several thousand more in indirect employment spanning hospitality, transportation, retail, and technical services. The aerospace ecosystem, IT parks, and logistics facilities around the airport will significantly expand this number, making Bhogapuram a major livelihood generator.

A regional transformation:

The Bhogapuram international airport is not merely a transport hub; it is the dawn of a new economic geography. Its influence will be felt across sectors—tourism, IT, logistics, aerospace, education, and real estate. It will reposition North Andhra as a vibrant, future-ready region capable of attracting global investments and talent.

As the project races toward completion, Bhogapuram stands as a shining symbol of what visionary infrastructure can achieve. It promises to integrate north Andhra with the world, stimulate balanced regional development, and convert potential into prosperity.

(The writer is former OSD to the former Union Civil Aviation Minister)