NIIF to make investment of Rs 631 crore in GMR Group’s Mopa airport in Goa

National Investment and Infrastructure Fund (NIIF) will invest Rs 631 crore in GMR group-run Mopa airport in Goa.

The investment was announced on Wednesday ahead of the airport inauguration by Prime Minister Narendra Modi on Sunday.

This is NIIF’s first investment in an airport asset in the country and also its first in Goa.

In 2019, it had unsuccessfully bid for development of three Airports Authority of India (AAI)-run airports under public-private partnership (PPP) model.

NIIF will invest in two other airports as a part of a financial partnership with the GMR group.

This includes the planned airport at Bhogapuram in Andhra Pradesh. The name of the third airport was not disclosed.

The investment will be made via compulsory convertible debentures in GMR Goa International Airport, the special purpose vehicle (SPV), which will operate the new airport in Goa.

In the first phase, Mopa airport will have a design capacity of handling up to 4.4 million passengers per annum. Its ultimate capacity will be 40 million passengers.

It will form part of the first dual-airport system in the country alongside Dabolim airport, which will remain operational.

Commercial operations at the new airport are expected to begin from January 5, 2023.

In a statement, Vinod Giri, managing partner (master fund) NIIF said that Mopa airport will boost air connectivity and provide strong tailwinds to the tourism-linked economy of Goa.

“This investment complements the existing portfolio and is a first step for NIIF to expand its presence in the airport sector,” he said.