Adani Group plans $15 billion expansion at its airports in five years: Report

The Adani Group reportedly plans to invest $15 billion to increase the annual passenger capacity at its airports to 200 million within the next five years. This move also aims to support India's growing air travel demand as the country prepares to list its airport unit.

According to a report in Bloomberg, the investment will help the group handle about two-thirds of the expected growth in passenger numbers, which are projected to more than double to 300 million by 2030. The expansion includes upgrades at several airports, such as adding terminals, taxiways, and a new runway at the Navi Mumbai airport, scheduled to open on December 25, the report added.

Capacity enhancements will also take place at Ahmedabad, Jaipur, Thiruvananthapuram, Lucknow, and Guwahati airports. Around 70 per cent of the funding for this expansion is expected to come from debt raised over five years, with the remaining amount from equity.

The planned upgrades will increase total passenger capacity by more than 60%, excluding additional capacity from new developments at Navi Mumbai and Guwahati airports. These six airports were leased during the 2020 privatisation phase and were previously managed by the Airports Authority of India.

This expansion also aligns with the Indian government's broader strategy to privatise airport operations and modernise infrastructure. The privatisation agenda now includes 11 more airports, combining loss-making and profitable ones. Adani Airport Holdings and GMR Airports are expected to be key bidders in this process.

India is also developing a second airport in Delhi to meet rising demand and aims to increase the total number of airports to 400 by 2047, up from 160 currently, reflecting significant growth in the aviation sector.