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Economy News, Latest Economic News Today | The HinduBusinessLine

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As Bhogapuram International airport nears launch, rural e...
2026-05-01 · via Economy News, Latest Economic News Today | The HinduBusinessLine
The Main Terminal of Bhogapuram Airport which is nearing completion. Construction of a 6 km approach road connecting the airport to the Highway is also in progress.

The Main Terminal of Bhogapuram Airport which is nearing completion. Construction of a 6 km approach road connecting the airport to the Highway is also in progress. | Photo Credit: G Naga Sridhar

The rural landscape around the upcoming Greenfield Bhogapuram International Airport in Andhra Pradesh’s Vizianagaram district is undergoing a visible economic transformation, with a surge in local business activity, employment opportunities and real estate demand ahead of its proposed inauguration in July.

Villages dotting the airport zone in Bhogapuram mandal are witnessing heightened commercial activity, with small businesses mushrooming and land prices rising sharply as hospitality chains, real estate developers and commercial players scout for land parcels to establish their presence near the airport.

“For the last two years, economic activity has picked up significantly because of the pace of construction and the steady rise in the number of visitors to the region. My earnings have doubled in the last six months,” said Vempada Ramana, a truck driver from Rajapuvalasa village, speaking to businessline.

The airport project has also opened up employment avenues for local youth, particularly in skilled and semi-skilled segments, as the facility prepares for operational readiness.

“There has been a noticeable rise in job opportunities for locals. My two sons, who completed their polytechnic courses, recently secured jobs linked to the airport ecosystem,” said K Venkateshwarlu, a resident of Chepalakuncheru village.

The changing economic landscape is also reflected in the emergence of small retail establishments across nearby villages. Grocery stores, eateries and fruit juice outlets have come up to cater to the growing workforce and visitors.

“I am optimistic about the future. The customer footfall has been encouraging and I have already achieved break-even,” said C Chandrasekhar, who recently opened a general store in Rellipeta, located opposite the airport’s approach road.

Land prices soar

The airport-driven economic activity has significantly altered the region’s real estate dynamics.

Land prices across villages surrounding the airport have surged, with investors rushing to convert gram panchayat-approved layouts into layouts approved by the Visakhapatnam Metropolitan Region Development Authority (VMRDA), formerly VUDA.

“Two years ago, land prices ranged between ₹1.5 crore and ₹3 crore an acre in most of these villages. With infrastructure works gathering pace, prices have now moved up to ₹5 crore to ₹8 crore an acre, depending on location,” said R S Rao, a Visakhapatnam-based infrastructure developer with a land bank in Kancheru village near the airport.

Several Visakhapatnam-based corporate groups are also exploring the formation of housing societies for residential development in the region.

Hospitality majors, too, are lining up investments. Premium hotel and resort brands such as The Oberoi Group and Mayfair Hotels & Resorts are evaluating opportunities in the emerging airport corridor.

“The State government’s new tourism policy and its faster pace of clearances are attracting hospitality, logistics and aerospace investments into the region,” a senior Industries Department official said, adding that Chief Minister N. Chandrababu Naidu is expected to announce fresh investments in the region ahead of the airport’s inauguration.

The airport developer, GMR Group, has also unveiled plans to set up an integrated aerospace park spread over 500 acres in Bhogapuram, including Maintenance, Repair and Overhaul (MRO) facilities and allied infrastructure.

Meanwhile, the State government has accelerated road connectivity projects linking Visakhapatnam to the airport to ensure seamless access. The airport is located 50 km away from the port city.

In January, an aircraft operated by Air India from New Delhi successfully landed at Bhogapuram as part of the airport’s maiden trial run.

The completion of the greenfield airport remains one of the key infrastructure priorities of the Andhra Pradesh government, with the project featuring prominently in the pre-poll commitments of the NDA alliance in the 2024 Assembly elections.

Published on May 1, 2026