Mumbai Airport Secures $1 Billion for Terminal 1 Overhaul
Mumbai’s Chhatrapati Shivaji Maharaj International Airport is set to undergo a major redevelopment as operator Adani Airports Holdings secures $1 billion in funding to modernize the airport. The project will focus on transforming Terminal 1, aiming to boost domestic operations and accommodate future international traffic as part of a phased infrastructure expansion.
Terminal 1’s revamp is scheduled to begin later this year and, once completed, will increase its annual passenger handling capacity by 42%, reaching 20 million travelers. Enhancements include a modern baggage handling system, a district cooling system, electrical substations, and a multi-modal transport hub linking the terminal directly to metro and bus networks, supporting seamless passenger transit.
India’s second busiest airport, BOM handled 54.8 million passengers in 2024, reflecting a 6.3% year-on-year rise. The upgrade is expected to address growing demand while aligning the facility with global standards in efficiency, comfort, and sustainability.
Adani Airports confirmed that the funding was raised through India’s first investment-grade private bond issuance in the airport infrastructure sector. The company secured $750 million via notes maturing in July 2029 and has the option to raise an additional $250 million. Leading institutional investors and insurance firms including Apollo Global Management, BlackRock, and Standard Chartered participated in the syndicate.
The bond issue is seen as a vote of confidence in India’s infrastructure growth story and Adani’s airport operating platform. The notes are expected to receive a BBB-/stable rating, supported by the airport’s strong asset base, reliable cash flow, and operational performance.
Adani Airports CEO Arun Bansal said the successful issuance reflects investor trust in the long-term strength of Mumbai International Airport and the company’s focus on sustainable infrastructure. He also emphasized Adani’s goal of expanding access to global capital markets to fund further developments.
In addition to the bond issuance, the Airports Economic Regulatory Authority of India has approved an increase in passenger user fees for international travelers, providing further funding for airport improvements.
Demolition of the current Terminal 1 structure will mark the initial phase of redevelopment, with completion projected between 2028 and 2029. During construction, displaced traffic will be accommodated by Terminal 2 and the upcoming Navi Mumbai International Airport, which is also being developed by Adani Airports.
Navi Mumbai International Airport, a $2 billion greenfield project, began construction in August 2021 and is targeting commercial operations by the third quarter of 2025. However, a NOTAM issued in May indicates that the facility will not be operational before August 6.
With these parallel projects, Adani Airports is positioning Mumbai as a key aviation hub for India, enhancing infrastructure and capacity to support long-term regional growth and global connectivity.
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