Massive Rs 20,000 Cr Push for Navi Mumbai Airport’s Next Phase By Adani Group

To construct the next phase of the greenfield facility, which is expected to be operational by 2029, Adani Group’s Navi Mumbai International Airport (NMIAL), which will serve as the second aviation hub of India’s commercial capital, intends to raise Rs 20,000 crore in the second half of FY26.

With local flights starting in May and international flights starting in July, the airport’s first phase is scheduled to open on April 17. With a first phase capacity of 20 million passengers, the Navi Mumbai airport is expected to handle 90 million people annually when it is finished in 2036.

“Because of the ground-breaking, rehabilitation, development, etc., the first phases of a greenfield project like this one often need greater expenditures. In addition, we’ve merged the first and second phases’ early development into one,” a senior Adani official who asked not to be identified stated.

In phases one and two alone, we are also building the automated people mover (APM) footings, metro footings and an underground tunnel for terminal connectivity. “This strategy will ensure that expansion in the future doesn’t interfere with airside operations,” the CEO stated.

Among other things, the next phase will involve building a second port, increasing the cargo capacity, and improving road and subway links.

According to sources who spoke to ET after the Adani Group revealed its plan to sell its investment in Adani Wilmar, the airport component will be financed in part by the money obtained from the sale.

CIDCO owns the remaining 26% of NMIAL, while Mumbai International Airport (MIAL) owns 74%. On January 8, 2018, CIDCO and NMIAL inked a 30-year concession deal. The first phase of development will cost a total of Rs 19,600 crore.

As part of this, MIAL committed 51% of NMIAL’s total paid-up equity share capital to the State Bank of India (SBI) in connection with a Rs 12,770 crore facility that SBI had approved for NMIAL.

Two-term loans of Rs 3,635.18 crore and Rs 308.85 crore had been obtained by NMIAL from another institution as of March 31, 2024. Quarterly installments of repayment will start in April 2026. After commercial operations begin, NMIAL will determine whether to look for fresh loans or refinance its existing ones. The current investment structure is composed of 35% equity and 65% debt, with 27% being quasi-equity (hybrid instruments such as convertible shares or subordinated loans that include aspects of debt and equity) and 8% being pure equity. The insider went on to say, “We may consider a 75%:25% debt-to-equity ratio going forward.”

“Building large infrastructure projects is a significant financial commitment,” a government official stated. He continued, “Completing the greenfield phase successfully boosts lenders’ confidence, making it easier to access bond funding for brownfield expansions.”

With 42 airplane stands, 70 general aviation stands, 7 cargo stands, and an initial cargo capacity of 0.8 million tonnes, Navi Mumbai International Airport will cover 1,160 hectares. A 1,200-kl SAF tank that may be expanded later, as well as four 6,000-kl fuel tanks. There are 53 retail locations and a city-side development plan on the non-aero side.

Source: ET Infra

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