GMR Visakhapatnam International Airport (GVIAL) is a special purpose vehicle to develop and operate the Bhogapuram International Airport.

This investment is part of the financial partnership announced on 7 December 2022 between the parties, in relation to investment by National Investment and Infrastructure Fund (NIIF) in the equity capital of three airport projects of GMR Airports.

This marks NIIF’s second airport investment, after its investment in GMR Goa International Airport, which operates Manohar International Airport in Goa, was completed in April 2023.

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 6 million passengers per annum and with an ultimate capacity of up to 40 million passengers per annum.

The transaction envisages a primary investment by NIIF in the form of compulsorily convertible debentures (CCDs) to be issued by GVIAL. The transaction is subject to customary completion of conditions precedent and necessary approvals.

GBS Raju, business chairman – Airports, GMR Group, said, “It is a proud moment for GMR Group to develop the greenfield Bhogapuram International Airport in the State of Andhra Pradesh. We are confident that we will replicate the success of our Hyderabad Airport and the new world class airport will act as the catalyst for the socio-economic growth of the city and the State at large.

The new Bhogapuram airport and airport city will help in the transformation of Visakhapatnam and will place it on the global map as the most preferred investment destination. Our growing partnership with NIIF is a further testament of GMR’s credibility as an Airport Infrastructure developer and the future of the Aviation industry in the country.”

GMR Airports Infrastructure is mainly engaged in development, maintenance and operation of airports, generation of power, coal mining and exploration activities, development of highways, development, maintenance and operation of special economic zones.

The company had reported a consolidated net loss of Rs 190.35 crore in the quarter ended September 2023 as against net loss of Rs 195.02 crore during the previous quarter ended September 2022. Sales rose 30.31% to Rs 2063.50 crore in Q2 FY24 over Q2 FY23.