NIIF To Invest Rs 631 Crore In GMR's Mopa Airport Project In Goa

Swarajya Staff

Dec 07, 2022, 11:14 AM | Updated 11:14 AM IST

A render of the ATC tower at the upcoming Goa International Airport at Mopa (Image: Association of Private Airport Operators)
A render of the ATC tower at the upcoming Goa International Airport at Mopa (Image: Association of Private Airport Operators)

National Investment and Infrastructure Fund will invest in the equity capital of GMR Airports Limited’s (GAL) 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 (GGIAL), a special purpose vehicle to run and operate the New Goa Airport," GMR said in a statement on Wednesday (7 December).

The transaction is subject to customary completion conditions and necessary approvals, it added.

This investment will be NIIF's first investment in an airport asset in the country and its first direct investment in the state of Goa.

NIIF is India’s first-ever sovereign wealth fund (SWF) which was set up by the Central governemnt in 2015.

NIIF manages over $4.3 billion of equity capital commitments across its three funds – Master Fund, Fund of Funds, and Strategic Opportunities Fund, each with a distinct investment strategy committed to support the country’s growth needs.

In 2016, GGIAL was awarded the concession to develop and operate a second airport in Goa on a Design-BuildFinance-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, will form part of the first dual-airport system in India alongside Dabolim airport.

In the first phase, Mopa International Airport will 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, the company said.

The project will provide vital infrastructure to support the continued growth of tourism and business travel activity in Goa.

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, including 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.

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