GMR Airports, NIIF Forge Strategic Alliance For Bhogapuram International Airport Investment
GMR Airports (GAL), a subsidiary of GMR Airports Infrastructure Limited, has formally entered into binding agreements with the National Investment and Infrastructure Fund (NIIF) for a significant investment in GMR Visakhapatnam International Airport (GVIAL). The investment, valued up to Rs 6.75 billion, will catalyse the development and operation of the Bhogapuram International Airport (BIA), marking a key milestone in the financial partnership announced earlier this month.
This collaboration represents NIIF's second airport investment, following its successful investment in GMR Goa International Airport Limited in April 2023.
NIIF's investment in GVIAL will be facilitated through Compulsorily Convertible Debentures (CCDs), with the total investment capped at Rs 6.75 billion. GVIAL, a special purpose vehicle, holds the concession for the 40-year Design-Build-Finance-Operate-and-Transfer model for BIA, located north of Visakhapatnam. The airport, a part of the National Infrastructure Pipeline, is poised to be the largest in Andhra Pradesh, with an initial capacity of 6 million passengers per annum, eventually scaling up to 40 million passengers per annum.
The investment is subject to customary completion conditions and necessary approvals, with a timeline aligned with the regulatory process.
Bhogapuram International Airport is anticipated to enhance air travel potential in the Visakhapatnam region significantly. It is strategically positioned to boost connectivity and transportation infrastructure in northern Andhra Pradesh, aligning with national priorities of strengthening air travel penetration to Tier 2 and Tier 3 cities.
GBS Raju, Business Chairman – Airports, GMR Group, stated, “It is a proud moment for GMR Group to develop the greenfield Bhogapuram International Airport in the State of Andhra Pradesh. We are confident that we will replicate the success of our Hyderabad Airport, and the new world-class airport will act as the catalyst for the socio-economic growth of the city and the State at large."
Vinod Giri, Managing Partner – Master Fund, National Investment and Infrastructure Fund Limited, commented on NIIF's commitment to infrastructure development, stating, "NIIF believes that Bhogapuram International Airport will strengthen aviation infrastructure in Andhra Pradesh, playing a pivotal role in the region’s economic progress in the coming years."
This investment represents NIIF's second airport project, underscoring its dedication to participating in the ambitious National Infrastructure Pipeline outlined by the Government of India.
GVIAL is promoted by GAL, one of the largest private sector airport operators globally. GAL, a partnership between India’s GMR Group and Groupe ADP, has developed and operated airports in more than nine countries, operating six airports in India, Indonesia, and the Philippines. The Bhogapuram International Airport project is part of GAL’s broader portfolio that includes airports like Delhi, Hyderabad, North Goa, Bidar, Kualanamu in Indonesia, and Mactan Cebu in the Philippines.
