GMR Airports (GAL), a subsidiary of GMR Airports Infrastructure, and NIIF (National Investment and Infrastructure Fund) entered into binding agreements for NIIF to invest up to Rs 675 crore in GMR Visakhapatnam International Airport (GVIAL), 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 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.

BIA will provide vital infrastructure to deliver a world-class passenger experience in Andhra Pradesh while significantly enhancing air travel potential in the Visakhapatnam region. The project is well positioned to boost connectivity and transportation infrastructure in northern Andhra Pradesh and also resonates with national priorities of strengthening air travel penetration and connectivity, especially to Tier 2 and Tier 3 cities. GVIAL shall be an important engine of Andhra Pradesh's economic development and growth over the medium to long term.