Visakhapatnam: The National Investment and Infrastructure Fund (NIIF) has entered into an agreement with GMR Airports Ltd (GAL), a subsidiary of GMR Airports Infra Ltd, to invest Rs 675 crore for development of the Bhogapuram greenfield airport.
NIIF is a collaborative investment platform set up by the central government for international and Indian investors.
This investment is part of the financial partnership announced on Dec 7 last year between these parties in relation to investment by NIIF in the equity capital of three airport projects of GMR Airports Ltd. This marks NIIF’s second airport investment, after its investment in GMR Goa International Airport Ltd, which operates Manohar International Airport in Goa that was completed in April, 2023.
GMR Visakhapatnam International Airports Ltd was awarded the concession to develop and operate the greenfield Bhogapuram International Airport (BIA) to the north of Visakhapatnam under a 40-year Design-Build-Finance-Operate-and-Transfer model.
BIA, a part of the national infrastructure pipeline, is poised to become the largest airport in AP with a phase I capacity of up to 6 million passengers and a targeted capacity of upto 40 million passengers, per annum.
The transaction envisages a primary investment by NIIF in the form of compulsorily convertible debentures (CCDs) of GVIAL. This is subject to customary completion of conditions and necessary approvals.
“BIA will provide vital infrastructure to deliver a world-class passenger experience in Andhra Pradesh while significantly enhancing air travel potential in the Visakhapatnam region. The project is well-positioned to boost connectivity and transportation infrastructure in northern AP and resonates with national priorities of strengthening air travel penetration and connectivity, especially to Tier 2 and Tier 3 cities,” a media release here on Thursday said.GVIAL shall be an important engine of AP’s economic development and growth over the medium to long term, it added.
