Adani Group's $15 Billion Investment to Expand India's Airport Infrastructure by 2030: Meeting Future Aviation Demand

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The Adani Group is preparing to invest $15 billion to expand passenger capacity across its airport portfolio to 200 million annually within the next five years, according to sources familiar with the strategy. This significant investment aims to support India's rapidly growing aviation sector as the company prepares for the upcoming listing of its airport division.

The comprehensive expansion plan encompasses adding new terminals, taxiways, and constructing a runway at the Navi Mumbai airport, scheduled to commence operations on December 25, revealed sources who requested anonymity due to the confidential nature of the information. Simultaneously, the conglomerate will undertake substantial capacity enhancements at its other airport facilities in Ahmedabad, Jaipur, Thiruvananthapuram, Lucknow, and Guwahati.

Financial structuring for this ambitious project involves approximately 70% funding through debt instruments to be raised over a five-year period, with the remaining 30% coming from equity contributions, the sources indicated.

This strategic expansion aligns perfectly with India's projected aviation growth trajectory, where passenger numbers are expected to surge to 300 million annually by 2030—more than double current levels. By scaling its infrastructure to accommodate two-thirds of this projected traffic, Adani is positioning itself as a crucial enabler of this national growth while strengthening the investment case for the planned initial public offering of its airports unit.

The capacity enhancement plan—representing more than a 60% increase in total passenger handling capability—excludes the 20 million capacity at Navi Mumbai and 11 million at Guwahati airports, both becoming operational this month, according to the sources.

When contacted, a spokesperson for the Adani Group did not immediately respond to requests for comment on these developments.

The upgrades primarily focus on six airports that Adani acquired during India's second airport privatization initiative in 2020, facilities previously operated by the state-controlled Airports Authority of India. India's airport privatization journey began in 2006, with GMR Airports Ltd. and GVK Power & Infrastructure Ltd. securing concessions for New Delhi and Mumbai airports respectively. Adani later acquired GVK's stake in Mumbai airport.

Looking forward, the Indian government plans to privatize 11 additional airports by bundling less profitable facilities with more successful ones. Adani Airport Holdings Ltd., which ranks as India's largest airport operator by number of facilities, and GMR Airports, which leads in passenger traffic volume, are anticipated to be the primary contenders in the upcoming bidding process.

India is also developing a second airport in Delhi to address increasing demand, while targeting an ambitious national network of 400 airports by 2047, a significant increase from the current 160 operational airports.

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