In a significant move towards infrastructural development, the National Investment and Infrastructure Fund (NIIF) on Thursday (December 21) announced an investment of up to ₹675 crore in the upcoming greenfield airport at Bhogapuram, Andhra Pradesh.
This venture is a collaborative effort with GMR Airports Ltd (GAL), a subsidiary of GMR Airports Infrastructure Ltd, marking NIIF's second airport investment.
The binding agreements between GAL and NIIF pertain to the investment in GMR Visakhapatnam International Airport Ltd (GVIAL), a special-purpose vehicle designated for the development and operation of the Bhogapuram International Airport (BIA).
This financial commitment is a part of the broader partnership outlined on December 7, 2022, wherein NIIF is set to invest in the equity capital of three airport projects managed by GMR Airports Ltd.
Notably, this strategic investment follows NIIF's successful involvement in GMR Goa International Airport Ltd, which operates the Manohar International Airport in Goa.
The completion of the Goa project in April 2023 has paved the way for NIIF to further contribute to the aviation sector, fostering infrastructural growth and connectivity.
GVIAL, in 2020, 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 the state of Andhra Pradesh with a phase I capacity of up to six million passengers per annum and an ultimate capacity of up to 40 million passengers per annum.
The transaction envisages a primary investment by NIIF in the form of compulsory convertible debentures (CCDs) to be issued by GVIAL. The transaction is subject to customary completion of conditions precedent and necessary approvals.
Shares of GMR Airports Infrastructure Ltd ended at ₹73.39, up by ₹2.03, or 2.84% on the BSE.
(Edited by : Shoma Bhattacharjee)
