Indian infrastructure giant GMR Group is looking to expand its presence in the Philippines, capitalizing on the recent inauguration of Alluri Sitarama Raju International Airport (Vizag Airport) at Bhogapuram in Andhra Pradesh, which is poised to serve as India’s “Gateway to Southeast Asia.”

Leading the inauguration was Indian Prime Minister Narendra Modi, along with local officials that included Andhra Pradesh Chief Minister, Nara Chandrababu Naidu and Minister of Civil Aviation, Kinjarapu Ram Mohan Naidu.

In his remarks, PM Modi emphasized that the path to prosperity is through investment, production, exports and employment.

Next-generation smart airport

Designed as a next-generation smart airport and developed at a cost of over $587million via a public-private partnership, the Vizag Airport will begin full commercial operations on 17 August with an initial capacity to handle six million passengers annually, then expanding to over 40 million passengers annually.

Strategically located on India’s eastern coast in Andhra Pradesh, the new gateway is expected to unlock massive trade, logistics and tourism links with neighboring Association of Southeast Asian Nations (ASEAN) member-nations including the Philippines, laying the groundwork for potentially more direct commercial flights between India and the Philippines.

The development aligns with GMR’s long-term business strategy in the aviation sector in the Philippines, where it has established a highly remarkable operational track record, having successfully implemented the transformation of the Mactan-Cebu International Airport (MCIA) and the modern passenger terminal at Clark International Airport.

The Indian conglomerate has also partnered with Philippine powerhouse companies Cavitex Holdings Inc. and House of Investments for the development of Sangley Point International Airport (SPIA) and the Sangley Aerocity in Cavite, aimed at easing the heavy congestion at the Ninoy Aquino International Airport in Metro Manila. Strong intent

GMR Group’s chairman for Energy and International Airports, Srinivas Bommidala, expressed the group’s strong intent to expand its business footprint in the Philippines.

“We’ll be more than happy, because we have already done two projects in the Philippines in recent years. And certainly, as a private investor, we’ll be more than happy to look at good opportunities, including Sangley and other regional airports, which will be a win-win for both of us, between India and the Philippines,” Chairman Bommidala said, noting that government-to-government interaction has been on the rise.

Broader alignment

The infrastructure push comes amid a broader alignment between Manila and New Delhi with bilateral trade and government-to-government cooperation having steadily climbed over the past few years.

During the visit of President Ferdinand Marcos Jr. to India in August last year where he met with Chairman Bommidala and other senior executives of the company, GMR discussed the potential to develop SPIA and Sangley Aerocity and explore opportunities in other regional gateways.

Roll out ‘red carpet’

According to Interior Secretary Jonvic Remulla, President Marcos has given instructions to appropriate government agencies that include the Departments of Transportation, Finance, Trade and Industry as well as the Philippine Navy to roll out the “red carpet” for GMR to ensure the flow of investments to the Philippines.

The SPIA and Aerocity project is projected to generate up to 15,000 direct and indirect jobs that could provide multi-million dollars in government revenues.