The construction of the second airport in India's commercial capital is finally taking shape with the Adani Airport Holdings readying funding of up to ₹15,000 crore from the State Bank of India for the proposed airport in Navi Mumbai.
The group is said to have lined up one of the largest project financing loans from India's largest lender, State Bank of India, signalling the return of capex loans for infrastructure projects.
Sources in the know also told ET that the estimated project cost has further increased by ₹4,000 crore to ₹20,000 crore. "Of the total cost, ₹5,000 crore will be put by the Adani Group and the rest will come through borrowings," the source added.
An email sent to the Adani group on Wednesday did not elicit any response till the time of going to print.
The bank is said to have completed the project appraisal. It is now finalising contours of the loan, which is likely to be long term, possibly of 15-year tenor. "It makes sense for a bank like SBI to go for such a long-term project loan as the lender is also seeking prudential credit opportunity," said an executive familiar with the matter.
Sources said, SBI would initially extend the proposed credit line but is likely to down-sell it to other interested lenders
Some foreign lenders appear interested in possible syndication; the source added.
An email sent to SBI didn't elicit any response till the time of going to print. The Adani group obtained management control of the Mumbai airport from the GVK group in July and owns 74% stake in Mumbai International Airport Limited (MIAL), which holds 74% stake in the Navi Mumbai airport. The rest is owned by the Maharashtra government. MIAL is the company that operates Mumbai airport.
After the acquisition of GVK's Mumbai International Airport, India's second busiest, and six other airports of AAI, Adani Airport Holdings Ltd accounts for 25% of all passenger traffic and 33% of air cargo.
With air passenger numbers estimated to grow as the industry comes out of the impact of the covid pandemic, airport infrastructure is set to see billions of dollars of investments as India races to fulfil its airport infrastructure needs.
While the Adani group capital investments are going to be in Navi Mumbai airport and AAI airports like Jaipur, Ahmedabad, Lucknow, Guwahati, Trivandrum and Mangalore, Jewar airport in Greater Noida is also set to see an investment of Rs 5,000 crore till early 2024. PM Narendra Modi laid the foundation stone of the airport today and the initial part of the first phase of the airport is set to be operational by February 2024.
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