NIIF Commits Rs. 675 Crore Investment in GMR's Bhogapuram Airport in Andhra Pradesh

The National Investment and Infrastructure Fund (NIIF) is set to invest Rs. 675 crore in GMR Visakhapatnam International Airport Limited (GVIAL), a special purpose vehicle responsible for the development and operation of the Bhogapuram International Airport (BIA) in Andhra Pradesh.

The investment involves NIIF, a significant investment platform backed by the Government of India, making a primary investment through Compulsorily Convertible Debentures (CCDs) issued by GVIAL. This move follows the financial partnership announced in December 2022, outlining NIIF's investment in the equity capital of three airport projects within the GMR Group.

GMR Group manages operations at three airports within India, namely Delhi, Hyderabad, and Mopa (Goa’s second airport). Additionally, the group oversees two international airports abroad, located in Cebu (Philippines) and Medan (Indonesia). This recent investment represents NIIF's second venture into airport investments, building on its earlier participation in GMR Goa International Airport Limited, as announced in December of the previous year.

In the initial phase, BIA is designed to handle up to six million passengers annually, with the ultimate capacity aiming for 40 million passengers per year. Vinod Giri, Managing Partner (Master Fund), emphasized the impact of the airport on the aviation infrastructure in Andhra Pradesh, stating, "NIIF’s investment in GVIAL represents the Fund’s second airport project, underscoring our commitment to participate in the implementation of the Government of India’s ambitious National Infrastructure Pipeline."

GBS Raju, Business Chairman (Airports) at GMR Group, highlighted the transformative potential of the new Bhogapuram airport and airport city, positioning Visakhapatnam as a globally preferred investment destination. Raju expressed confidence in the growing partnership with NIIF, citing it as a testament to GMR’s credibility as an Airport Infrastructure developer and the future of the Aviation industry in India.

GMR Group is currently overseeing the expansion of the Delhi and Hyderabad airports, with expansion work expected to conclude by March of the next year. Post-expansion, the Delhi airport's capacity will reach 100 million passengers per annum (MPPA), while the Hyderabad airport will accommodate 34 MPPA.

BS