National Investment and Infrastructure Fund (NIIF) will invest up to Rs 6.75 billion in the greenfield airport at Bhogapuram, which is being developed by GMR Airports Limited (GAL), a subsidiary of GMR Airports Infrastructure Limited.

GAL and NIIF inked binding agreements for investment of the sum in GMR Visakhapatnam International Airport Limited (GVIAL), a special purpose vehicle established to develop and operate the Bhogapuram International Airport.

The investment is part of the financial partnership announced on December 7 between the parties, in relation to investment by NIIF in the equity capital of three airport projects of GMR Airports Limited.

GMR Group business chairman (Airports) GBS Raju said, “We are confident that we will replicate the success of our Hyderabad Airport. The new world-class airport will act as a catalyst for the socio-economic growth of the city and the State at large. The 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.”

NIIF managing partner (Master Fund) Vinod Giri said, “NIIF believes that Bhogapuram International Airport will strengthen aviation infrastructure in Andhra Pradesh and play a pivotal role in the region’s economic progress in the coming years.”

This is the second airport NIIF has invested in after GMR Goa International Airport Limited, which operates Manohar International Airport in Goa.