Big Boost for Nagpur! Cabinet clears mega airport modernisation plan under PPP model | Indiablooms
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the extension of the lease period of the Airports Authority of India (AAI) land leased to MIHAN India Limited (MIL) beyond August 6, 2039.
The move will enable MIL to license Dr. Babasaheb Ambedkar International Airport to the concessionaire, GMR Nagpur International Airport Limited (GNIAL), for a period of 30 years from the Commercial Operation Date (COD).
The decision marks a major milestone in Nagpur airport’s transformation into a regional aviation hub under the ambitious Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project.
In 2009, a joint venture company, MIL, was formed by AAI and Maharashtra Airport Development Company (MADC), with an equity structure of 49:51 respectively.
Although AAI’s airport assets were transferred to MIL in 2009 for operational purposes, the formal lease deed was delayed due to land demarcation issues. Subsequently, the land was leased to MIL only until August 6, 2039.
In 2016, MIL floated a global tender to identify a private partner for operating the airport under the Public-Private Partnership (PPP) model. GMR Airports Limited (GAL) emerged as the highest bidder, initially quoting a revenue share of 5.76 percent, which was later revised to 14.49 percent of gross revenue.
However, MIL annulled the bidding process in March 2020, a decision successfully challenged by GAL before the Bombay High Court.
The matter subsequently reached the Supreme Court of India, which ruled in GAL’s favour. Following the apex court’s judgment on September 27, 2024, MIL signed the concession agreement with GNIAL on October 8, 2024.
A New Era for Nagpur Airport
With the lease period of AAI’s land now extended beyond August 6, 2039, it becomes co-terminus with GNIAL’s 30-year concession period, paving the way for the formal handover of the airport to the joint venture company.
The move is expected to usher in a new phase of growth and infrastructure development for Nagpur Airport. Combining private-sector efficiency with government oversight, the airport is poised for substantial investment, modernization, and enhanced passenger and cargo services—aligning with the Government of India’s broader vision of strengthening aviation infrastructure.
GNIAL will spearhead the transformation of Nagpur’s Dr. Babasaheb Ambedkar International Airport into a world-class aviation facility through phased development. The long-term plan aims to build capacity to handle up to 30 million passengers annually, positioning it as one of Central India’s most important aviation hubs.
The upgrade is expected to significantly improve regional connectivity across Vidarbha, strengthen the region’s economic infrastructure, and substantially boost cargo-handling capabilities, further cementing Nagpur’s strategic role in India’s logistics and aviation network.
