On March 27, 2023, The Adani Group announced that it had completed the financing for the greenfield airport in Navi Mumbai. According to a statement made by the Adani Group on March 28, 2023, the State Bank of India (SBI) has underwritten the total debt requirement of Rs 12,770 crore for the Navi Mumbai International Airport project under the Adani SBI cooperation. The group announced financial closure in conjunction with the completion of financing contracts with the SBI.
By 2024, it is anticipated that the long-delayed second airport that would service the Mumbai Metropolitan Region (MMR) will be completed. With the purchase of the Mumbai airport in July of last year, the Adani Group assumed control of the Navi Mumbai Airport project.
Adani Group – Largest Airport Infrastructure Company
In July 2021, the Adani Group acquired the Mumbai International Airport and the Navi Mumbai Airport from the GVK Group, making it the largest provider of airport infrastructure, in charge of 25% of all passenger traffic and 33% of all air cargo. In a statement, the company claimed that Navi Mumbai International Airport Private Limited (NMIAL), an affiliate of Adani Enterprises Limited (AEL), had completed the financing for the project to build a new international airport in Navi Mumbai with the help of Adani SBI.
The Navi Mumbai Airport will be officially opened by the Adani Group in 2024. After completing all phases, the Navi Mumbai International Airport (NMIA) could accommodate nine crore passengers annually, with the capacity to handle ten crore passengers yearly after it is fully operational in December 2024. Following an aerial inspection of the development of the airport, Chief Minister Eknath Shinde and DCM Devendra Fadnavis gave the Adani Group-led Navi Mumbai International Airport Limited (N.M.I.A.L.) the order to open the airport to air traffic by March–April 2024.
The airport was expected to handle one crore passengers annually in 2021 and 2 crore people in the second phase in 2024, according to the original plan for the first phase. By combining these two phases, the airport could handle two crore passengers annually by the end of 2024, 6 crores in the third phase, and 9 crores in the fourth phase, which can now increase to 10 crore passengers annually.
The main goal of Adani SBI cooperation is to build and offer top-notch airport infrastructure and related services to customers
The acquisition of the Mumbai International Airport Ltd. and gaining control of the Navi Mumbai International Airport project has made the Adani Group the leading provider of airport infrastructure. It is handling 33% of all aviation cargo and 25% of all passenger traffic. The corporation has stated that it intends to open the airport in 2024. “The Adani Group’s focus is to create and provide best-in-class airport infrastructure and allied services to the consumer,” said Jeet Adani, director of Navi Mumbai International Airport Ltd.
They seek to create a hub-and-spoke network connecting the largest cities in India with those in the Mumbai region. They strive to create an economic ecosystem with airports and airport passengers at its core because of the crucial role that airports will play in the future. This Adani SBI collaboration is presenting Mumbai with another iconic utility. Saraf & Partners Law Offices provided the lenders’ legal counsel, and SBI Capital Markets Ltd. served as the SBI’s financial advisor.
The legal counsel for NMIAL (Navi Mumbai International Airport Limited) was Cyril Amarchand Mangaldas.
Best airport infrastructure
Jeet Adani, Director of NMIAL, stated, “The Adani Group’s focus is to create and provide best-in-class airport infrastructure and allied services to the consumer.” This plan aims to connect the largest cities in India with other nearby cities and towns using a hub-and-spoke design. They seek to create an economic ecosystem with airports and airport passengers at its core because of the crucial role that airports will play in the future.
According to the project’s shareholding, Mumbai International Airport Ltd (MIAL) owns 74% of NMIAL and City and Industrial Development Corporation of Maharashtra Ltd (CIDCO), a project concessionaire and a government of Maharashtra undertaking. It is suggested that the project be developed over time in stages.
The maximum number of passengers it can accommodate is 60 million per year (MPPA). NMIAL will implement 20 MPPA of passenger capacity and 800,000 tonnes of cargo handling in the initial phase, which will be finished by December 2024.