adani-group-plans-rs-60-000-crore-expansion-for-existing-airports-eyes-doubling-capacity-by-2040

Adani Group has revealed ambitious plans to invest Rs 60,000 crore in expanding its seven existing airports over the next 5-10 years, in a bid to revolutionize India's aviation infrastructure. Karan Adani, Managing Director of Adani Ports and Special Economic Zone, and Arun Bansal, Chief Executive Officer of Adani Airports Holdings (AAHL), announced the comprehensive expansion strategy during interactions with journalists at the inauguration of a new terminal at Lucknow Airport on March 10.

 

The investment plan entails allocating Rs 30,000 crore for enhancing the 'airside' infrastructure over the next five years, with the remainder earmarked for 'cityside' development within the subsequent five to ten years across airports in Mumbai, Ahmedabad, Lucknow, Mangaluru, Guwahati, Jaipur, and Thiruvananthapuram.

 

The capital expenditure does not include the Rs 18,000 crore set aside for Phase-I development of the upcoming Navi Mumbai airport, scheduled to commence operations by March 2025. Karan Adani emphasized the transformative impact of these investments, envisioning an augmentation of the airports' current annual passenger capacity of 10-11 crore to up to three times by 2040. He outlined specific expansion plans for each airport, including the commissioning of new terminals and infrastructure upgrades, aimed at achieving a combined capacity of 25-30 crore passengers annually by 2040.

 

The investment will be financed through internal accruals of parent company Adani Enterprises Ltd., reflecting the group's robust financial position and commitment to driving growth in the aviation sector.

 

While the group has not yet finalized plans for listing its airport subsidiary, Adani Airport Holdings Limited, Karan Adani remained non-committal on reports of a $2.6-billion fundraise for the airport and green hydrogen business.

 

Arun Bansal emphasized on the priority of operationalizing the Navi Mumbai airport and kickstarting city-side development across various airports, with potential plans for an IPO of the airport business at a later stage. He highlighted the group's international expansion strategy, focusing on opportunities aligned with its core strengths in sectors such as ports and transmission, while planning investments based on long-term projections up to 2033-35.

 

The Adani Group's ambitious expansion strategy also includes doubling airport capacity by 2040, with a phased approach to growth. For instance, Lucknow Airport's new terminal, with a current capacity of 8 million passengers per annum, is set to increase to 13 million in the next phase and further to 38 million annually by 2035.

 

The group also aims to develop the city-side infrastructure of airports, leveraging 160 acres in Mumbai, 100 acres in Lucknow, 200 acres in Navi Mumbai, 17 acres in Jaipur, and 2 acres in Thiruvananthapuram for ancillary revenue generation through businesses related to the aviation sector, such as hotels and aviation company offices.

 

Karan Adani said, "The potential to emerge as hubs for international passengers, bypassing traditional metro hubs and providing direct connectivity across the world. With rights to operate eight airports, including the recent acquisitions of Mumbai and the upcoming Navi Mumbai airport, the Adani Group is poised to build capacity for 250 to 300 million passengers by 2040, up from about 73 million across its current operational airports"