Karan Adani, Managing Director of Adani Ports and Special Economic Zone, revealed that the Adani Group has earmarked Rs 60,000 crore for the expansion of its seven existing airports over the next 5-10 years. This investment will focus on enhancing both the ‘airside’ and ‘cityside’ infrastructure.
Arun Bansal, Chief Executive Officer of Adani Airports Holdings (AAHL), detailed that Rs 30,000 crore will be dedicated to the ‘airside’ development in the next five years, while the remainder will be allocated to the ‘cityside’ enhancements over the subsequent five to ten years. The seven airports earmarked for expansion include Mumbai, Ahmedabad, Lucknow, Mangaluru, Guwahati, Jaipur, and Thiruvananthapuram.
Bansal clarified that the allocated capital expenditure (capex) of Rs 60,000 crore excludes the Rs 18,000 crore designated for the Phase-I development of the Navi Mumbai airport, which is set to commence operations by March 2025.
Speaking at the inauguration of the new terminal at Lucknow Airport on March 10, constructed at a cost of Rs 2,400 crore, both Bansal and Karan Adani emphasized the substantial increase in passenger handling capacity. Adani mentioned that the current combined capacity of their airports is 10-11 crore passengers annually (CPA), which is expected to triple. He outlined plans for new terminals at Guwahati, Ahmedabad, and Jaipur airports, aiming for a combined capacity of 25-30 CPA by 2040.
Karan Adani, MD of Adani Ports and Special Economic Zone, disclosed that the group has earmarked Rs 60,000 crore for expanding its existing airports over the next 5-10 years. This substantial investment will be funded through internal accruals of parent company Adani Enterprises Ltd.
Adani Airport Holdings Limited CEO, Arun Bansal, stated that while there are no immediate plans for listing the airport subsidiary, the priority is to operationalize the Navi Mumbai airport and commence city side development at airports. An IPO may be considered at a later stage.
Regarding reports of a $2.6-billion fundraise for airport and green hydrogen businesses, Bansal declined to comment. He emphasized the group’s long-term perspective, focusing on projections for 2033-35 rather than short-term plans.
The Adani Group aims to more than double its airport capacity by 2040, focusing on phased growth. For instance, Lucknow Airport’s current capacity of 8 million passengers per annum will be increased to 13 million in the next phase and further to 38 million annually by 2035.
The group plans to develop the city side of airports to enhance ancillary revenues, with Mumbai, Lucknow, Navi Mumbai, Jaipur, and Thiruvananthapuram earmarked for such developments.
Adani highlighted the significance of airports in smaller cities becoming international hubs, bypassing traditional metro hubs and offering direct global connectivity.
With rights to operate eight airports and capacity expansion plans, the group aims to cater to 250 to 300 million passengers by 2040, a substantial increase from the current operational capacity of about 73 million.
Prime Minister Narendra Modi inaugurated airport projects worth Rs 9,800 crore on March 10, including new terminal buildings and laying the foundation stones for additional projects across various airports.