GMR Airports Limited and NIIF announce partnership to invest in three airports. NIIF to invest INR 6.31 billion in upcoming greenfield airport at Mopa, North Goa

Spread the love
GMR Airports Limited

GMR Airports Limited and NIIF announce partnership to invest in three airports. NIIF to invest INR 6.31 billion in upcoming greenfield airport at Mopa, North Goa.

GMR Airports Limited (GAL), the airport business holding entity and a subsidiary of GMR Airports Infrastructure Limited and NIIF (National Investment and Infrastructure Fund) announce 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 INR 6.31 billion 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. The transaction is subject to customary completion conditions & necessary approvals. 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 & 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. The project also strongly aligns with the Government of India’s focus on improving air travel penetration and connectivity.

GGIAL is promoted by GAL – one of the largest private sector airport operators globally. 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, viz. Delhi, Hyderabad and Bidar airports in India, Kualanamu Airport in Medan, Indonesia and Mactan Cebu Airport in Philippines. In addition to Mopa International Airport, GAL is also developing the upcoming airports in Bhogapuram, Andhra Pradesh, and in Crete, Greece and awaits signing of the concession agreement of Nagpur airport, which is a brownfield project.

GBS Raju, Business Chairman – Airports, GMR Group, said, “It is a proud moment for GMR Group having developed Mopa Airport. Goa is the prime holiday destination in India and visited by travellers from across the world. We are confident that Mopa Airport will be a marquee airport in the country and shall add to the pride and economic development of the state. The Airports has been designed to capture the vibrancy and the essence of Goan culture. Our partnership with NIIFL which will also extend to two more airports is a further testament of GMR’s credibility as an Airport Infrastructure developer and the future of the Aviation industry in the country

Vinod Giri, Managing Partner – Master Fund, National Investment and Infrastructure Fund Limited, said, “NIIF believes that Mopa international airport will boost air connectivity to the state and provide strong tailwinds to the tourism linked economy of Goa. NIIFL’s Master Fund is India’s largest infrastructure fund and has built a robust and well-diversified portfolio across ports & logistics, renewables, smart meters, roads and digital infrastructure. NIIF’s investment in Mopa airport shall be the Master Fund’s sixth investment and is a testament to our commitment to partner alongside reputed infrastructure developers, state governments and key stakeholders to fast-track the execution of the Government of India’s ambitious National Infrastructure Pipeline. In line with the fund strategy, this investment complements the existing portfolio and is a first step for NIIF to expand its presence in the airport sector.”

About Author

Leave a Reply

Your email address will not be published. Required fields are marked *