GMR Airports Limited (GAL) and NIIF (National Investment and Infrastructure Fund) have signed agreements for NIIF to invest up to Rs. 6,750 crore in GMR Visakhapatnam International Airport Limited (GVIAL). This investment is part of a financial partnership announced on December 7, 2022. GVIAL was awarded the concession to develop and operate the Bhogapuram International Airport in 2020. The airport will have a capacity of up to 6 million passengers per year in phase I and up to 40 million passengers per year in the future. The investment by NIIF will be in the form of Compulsorily Convertible Debentures. The project aims to improve air travel in Andhra Pradesh and strengthen connectivity to Tier 2 and Tier 3 cities.
GBS Raju, Business Chairman of Airports at GMR Group, expressed confidence in the success of the new airport and its impact on the socio-economic growth of Andhra Pradesh. Vinod Giri, Managing Partner of Master Fund at NIIF, stated that the Bhogapuram International Airport will play a crucial role in the region’s economic progress.
Overall, this investment will contribute to the development of the Bhogapuram International Airport and boost air travel infrastructure in Andhra Pradesh. It aligns with the government’s National Infrastructure Pipeline and aims to enhance connectivity to smaller cities.
