Adani plans Rs 15,000 cr fund for proposed airport in Navi Mumbai

Adani Airport Holdings is ready to fund Rs 15,000 crore from State Bank of India for the proposed airport in Navi Mumbai.

The group has prepared one of the biggest project financing loans from India's largest lender, the State Bank of India, indicating the return of CAPEX loans for infrastructure projects.

The estimated project cost has additionally surged by Rs 4,000 crore to Rs 20,000 crore. Of the total price, Rs 5,000 crore will be funded by the Adani Group and the rest will come via borrowings.

The bank has achieved the project appraisal. It is presently finalising the contours of the loan, which is anticipated to be long term, probably of the 15-year tenor.

SBI would initially extend the planned credit line but is anticipated to down-sell it to other interested lenders.

Adani Group took operational control of the Mumbai airport from the GVK group in July and holds a 74% share in Mumbai International Airport Limited (MIAL), which owns 74% share in the Navi Mumbai airport. The rest is held by the Maharashtra government. MIAL is the firm that runs Mumbai airport. After the procurement of GVK's Mumbai International Airport, India's second busiest, and six other airports of AAI, Adani Airport Holdings Ltd estimates 25% of all passenger traffic and 33% of air cargo. With air passenger numbers calculated to increase as the industry comes out of the influence of the Covid-19 pandemic, airport infrastructure is ready to observe billions of dollars of investments as India races to meet its airport infrastructure requirements.

While the Adani group capital investments will be in Navi Mumbai airport and AAI airports such as Guwahati, Trivandrum, Ahmedabad, Jaipur, Lucknow and Mangalore, Jewar airport in Greater Noida is additionally set to witness an investment of Rs 5,000 crore till early 2024.

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