---
title: "Andhra Pradesh Launches Rs 4,700 Crore Aviation Hub to Drive Regional Growth"
url: https://projectchintan.com/article/andhra-pradesh-launches-rs-4-700-crore-aviation-hub-to-drive-regional-growth-i28ce
publisher: Project Chintan
author: Project Chintan Newsroom
section: India
published: 2026-07-31T10:46:09.000Z
modified: 2026-07-31T12:52:51.928Z
language: en-IN
---

# Andhra Pradesh Launches Rs 4,700 Crore Aviation Hub to Drive Regional Growth

Prime Minister Narendra Modi and Chief Minister N. Chandrababu Naidu will inaugurate the Alluri Sitarama Raju International Airport on August 1, 2026. The greenfield project marks the first international-standard facility developed since the state's 2014 bifurcation.

## Key takeaways

- Commercial flights will transition from the INS Dega naval base to the new Bhogapuram facility on August 17, 2026.
- The 2,200-acre greenfield airport cost ₹4,700 crore and was developed via a Design, Build, Finance, Operate and Transfer (DBFOT) model.
- The 3,800-metre Code E runway is designed to handle major wide-body aircraft including the Boeing 777 and Airbus A350.
- Initial capacity is set at six million passengers annually, with a long-term expansion target of 40 million through an 'aerotropolis' concept.
- The facility includes specialized cold-chain cargo infrastructure to support the state’s pharmaceutical and seafood export sectors.

## Infrastructure for a New Era

Andhra Pradesh reaches a significant milestone on August 1, 2026, at 11 a.m. with the official opening of the Alluri Sitarama Raju International Airport. Located at Bhogapuram in Vizianagaram district, this greenfield facility represents the first international aviation hub established after the 2014 state bifurcation. Prime Minister Narendra Modi will lead the ceremony alongside Chief Minister N. Chandrababu Naidu, Union Civil Aviation Minister K. Rammohan Naidu, and Governor S. Abdul Nazeer.

Constructed by GMR Visakhapatnam International Airport Limited (GVIAL) under a Public-Private Partnership (PPP) model, the project represents an investment exceeding ₹4,700 crore. While the inaugural ceremony is set for early August, full commercial flights will commence on August 17. On that date, civil operations will shift from the existing facility at INS Dega, which will transition into a dedicated military installation.

## Strategic Shift from Military Enclaves

The transition to Bhogapuram solves long-standing operational bottlenecks at the INS Dega civil enclave. As a naval airbase, the current site prioritizes military sorties, which severely restricts civilian flight slots and prevents 24/7 operations. Space constraints at the naval base also blocked runway extensions and the construction of additional parking bays. Historically, the Ministry of Defence has sought to utilize INS Dega exclusively for frontline squadrons, including maritime surveillance aircraft and helicopters supporting the aircraft carrier INS Vikrant.

The new Bhogapuram site offers geographical advantages, situated 45 km from Visakhapatnam, 20 km from Vizianagaram, and 60 km from Srikakulam. Its proximity to National Highway 16 facilitates efficient transit for the North Coastal region's three core districts. Unlike the previous site, this facility occupies 2,200 acres, with another 500 acres reserved for future growth.

## Technical Specifications and Economic Impact

GMR has designed the airport to withstand extreme weather, featuring a glass façade capable of resisting 275 kmph cyclonic winds. The technical infrastructure includes:
- A 3,800-metre Code E runway supporting wide-body aircraft like the Boeing 787 Dreamliner and Airbus A350.
- CAT I Instrument Landing System (ILS) and an AI-integrated operations control center.
- An initial annual capacity of six million passengers, scalable to 40 million.
- A dedicated cold-chain cargo terminal for exports of seafood, pharmaceuticals, and agricultural goods.

The project lifecycle spanned a decade of political transitions. Initially conceived in 2014 by the Naidu administration, the concession agreement was signed in 2020 under the government of Y.S. Jagan Mohan Reddy, with major construction accelerating between 2024 and 2026. The developers intend to build an 'aerotropolis' around the site, aiming to foster tourism and industrial investment across the Chennai-Kolkata corridor.

Source: The Hindu — National

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Canonical: https://projectchintan.com/article/andhra-pradesh-launches-rs-4-700-crore-aviation-hub-to-drive-regional-growth-i28ce
Reported from: The Hindu — National