NIIF partners with GMR to invest `631 cr in 3 airports

New Delhi: GMR Airports Limited (GAL) and NIIF (National Investment and Infrastructure Fund) have announced a financial partnership for NIIF to invest in the equity capital of three airport projects.These include the Greenfield international airports at Mopa, Goa and Bhogapuram, Andhra Pradesh. The transaction envisages NIIF making a primary investment of Rs 631 crore in the form of Compulsory Convertible Debenture (CCD) in GMR Goa International Airport Limited (GGIAL), a special purpose vehicle to run and operate the New Goa Airport.

This investment shall be NIIF's first investment in an airport asset in the country and its first direct investment in the state of Goa. GGIAL, in 2016, was awarded the concession to develop and operate a second airport in Goa on a Design-Build Finance-Operate-and-Transfer (DBFOT) basis. Mopa airport is a Greenfield airport PPP concession awarded by a state government.

The airport has already received aerodrome license and upon commissioning, shall form part of the first dual-airport system in India alongside Dabolim airport. In the first phase, Mopa International Airport shall have a design capacity of handling up to 4.4 million passengers per annum, with an ultimate capacity of up to 40 million passengers per annum. Supported by progressive tourism sector policies and continued public and private investment in the state's tourism and transport infrastructure, Goa has evolved into a world-class tourist destination. The project will provide vital infrastructure to support the continued growth of tourism and business travel activity in Goa.

GAL is a partnership between India's GMR group and Groupe ADP (majority equity held by the French government). GAL has developed and operated airports in over nine countries and presently operates five airports including Delhi, Hyderabad and Bidar airports in India, Kualanamu Airport in Medan, Indonesia and Mactan Cebu Airport in Philippines.