Adani Group will undertake a mega expansion of 400 airports in India. The capacity of Navi Mumbai, Guwahati, and other airports will be increased with an investment of INR 1.25 lakh crore. The company plans to handle 200 million passengers.
Adani Group: Air travel is rapidly growing in India, and in view of this, the government and Adani Group are set to develop airport infrastructure on a large scale. Adani Group is preparing to significantly increase the capacity of all its airports over the next five years. The company plans to invest approximately 15 billion dollars, which is INR 1.25 lakh crore. Following this investment, Adani Group's airports will be able to handle 200 million, or 20 crore, passengers annually. This step is also crucial because air travel in India is continuously rising, and the company is also preparing to list its airport business on the stock market.
Major Changes at Navi Mumbai Airport
Adani Group is undertaking extensive work at Navi Mumbai Airport. This airport is scheduled to open on December 25. New passenger terminals will be constructed, taxiways will be expanded, and new runways will be prepared to safely operate more flights. This upgrade will significantly enhance Navi Mumbai Airport's capacity and facilities.
Upgrades to Airports in Other Cities
Adani Group will also increase the capacity of airports in Ahmedabad, Jaipur, Thiruvananthapuram, Lucknow, and Guwahati. At these airports, improvements will be made to provide better facilities for passengers, more space, and essential infrastructure for smooth operations. These enhancements will improve the passenger experience and boost the airports' daily operational capacity.
Understanding the Investment Plan
Approximately 15 billion dollars are required for this entire expansion project. About 70 percent of this amount will be raised as debt over the next five years. The remaining funds will be invested by the company itself, known as equity. This approach will cover the costs of significant structural improvements and expansion.
Growing Role in Air Traffic
Air travel in India is expected to grow rapidly in the coming years. It is anticipated that by 2030, 300 million, or 30 crore, people will fly annually in the country. Adani Group will play a significant role in this growth by increasing its capacity to 200 million. This will strengthen the company's foothold in the Indian aviation market and make the airport unit's IPO more attractive.
Navi Mumbai and Guwahati Airports Counted Separately
This plan does not include the 20 million passenger capacity of Navi Mumbai Airport and the 11 million capacity of Guwahati Airport. This means these two airports are already accounted for separately, and the new expansion is in addition to them.
Privatization of Government Airports
All the airports that Adani Group is upgrading were leased by the government to private companies in 2020. Airport privatization in India began in 2006 when Delhi and Mumbai airports were handed over to private companies. Later, Adani Group also acquired GVK's stake in Mumbai Airport.
Now, the government is once again planning to hand over 11 more airports to private companies. In this process, loss-making airports will be bundled with profitable ones. Adani Airport Holdings and GMR Airports are considered the best contenders in this process.
