The Adani Group has committed a 51% stake in the Navi Mumbai International Airport (NMIAL) to the State Bank of India (SBI), securing a funding facility of INR 12,770 crore for the airport's construction. Despite delays, the new airport aims to handle 90 million passengers and 2.6 million tonnes of cargo annually by 2031-32. Adani Enterprises targets a March FY25 launch, three months later than planned. The group, facing financial strain with consolidated losses of INR 227 crore in FY24, is boosting its borrowing limit to INR 30,000 crore to support ongoing and future projects.
The Adani Group, which oversees the Mumbai International Airport (MIAL), has pledged a 51% stake in the Navi Mumbai International Airport (NMIAL) to the State Bank of India (SBI). This move ties into a substantial funding agreement, where SBI has sanctioned a facility worth INR 12,770 crore to support the construction and operation of the new airport.
MIAL currently holds a 74% share in NMIAL. Following previous delays, Adani Enterprises officials aim to launch operations by the March quarter of FY25, three months later than initially planned. This project is of particular importance, as the Navi Mumbai airport is designed to accommodate up to 90 million passengers and handle 2.6 million tonnes of cargo per year by 2031-32. Phase I of the development will initially support 20 million passengers and includes plans for four terminals and two runways.
This financial pledge follows a turbulent period for Adani Airport Holdings (AAHL), which has faced challenges despite its control of about 23% of India's air traffic. Heavy operational losses were reported for the fiscal year ending FY24. AAHL's consolidated losses surged to INR 227 crore compared to INR 52 crore in FY23, even as its total income rose by 26% year-on-year to INR 7,394 crore. Notably, the company did achieve a standalone profit of INR 473 crore, reflecting a substantial increase but unable to offset the overall losses from its wider operations.
The need for additional capital is evident, as AAHL recently sought shareholder approval to increase its borrowing limit from INR 20,000 crore to INR 30,000 crore. This move suggests the group is ramping up its financial capabilities to support ongoing and future projects, including the Navi Mumbai Airport.
The problems faced by Adani's airports are reflected in the financial performance of several operational sites. MIAL reported a loss of INR 608 crore in FY24, while the Ahmedabad airport faced losses of INR 327 crore. Other airports managed by AAHL, including those in Jaipur, Guwahati, Thiruvananthapuram, Mangaluru, and Lucknow, also reported deficits during the same fiscal year.
As the Navi Mumbai airport project moves ahead, it represents not only a major investment in infrastructure but also an opportunity for growth in the aviation sector more broadly. Once fully operational, this facility is expected to significantly ease the congestion currently faced at Mumbai International Airport, which serves 55 million passengers annually.
The Adani Group's strategic initiatives in expanding its airport operations come at a time when the demand for air travel in India is rapidly increasing. The ongoing recovery from the pandemic has led to a surge in passenger traffic, and with the projected capacity of NMIAL, the Adani Group is positioning itself to capitalize on this growth.
As the project progresses, updates from the Adani Group regarding the status of the Navi Mumbai airport and plans for their other airports are awaited. This development not only emphasizes the increasing importance of aviation infrastructure in India but also reflects the complex financial strategies that large corporations must navigate to sustain and expand their operations.
Advertisement
Facebook
Whatsapp
