Nagpur Airport News: Major Upgrade Approved by Cabinet for International Airport
Nagpur Airport News
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the extension of the lease period of Airports Authority of India (AAI) land for the development and modernization of Nagpur International Airport under the Public Private Partnership (PPP) model. This important decision is expected to transform Nagpur’s Dr. Babasaheb Ambedkar International Airport into a world-class aviation hub in Central India.
The approval allows MIHAN India Limited (MIL) to grant a long-term license to GMR Nagpur International Airport Limited (GNIAL) for a period of 30 years from the Commercial Operation Date (COD). This move is considered a major step forward for the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project.
MIHAN India Limited was formed in 2009 as a joint venture company between Airports Authority of India (AAI) and Maharashtra Airport Development Company Ltd. (MADC). In this partnership, AAI holds a 49 percent stake while MADC owns 51 percent. Although airport assets were transferred to MIL in 2009, the official lease process faced delays because of land demarcation issues. Later, AAI land was leased to MIL only until August 6, 2039.
To improve airport operations and attract investment, MIL announced a global tender in 2016 to select a private partner under the PPP model. GMR Airports Ltd. emerged as the highest bidder with an initial revenue share offer of 5.76 percent, which was later revised to 14.49 percent of gross revenue. However, in March 2020, MIL cancelled the bidding process.
The cancellation was challenged by GMR Airports Ltd. in the Bombay High Court, where the company received support. Later, the Supreme Court of India also ruled in favor of GMR Airports Ltd. Following the Supreme Court judgment dated September 27, 2024, MIL officially signed the concession agreement with GMR Nagpur International Airport Limited on October 8, 2024.
With the latest Cabinet approval, the lease period of AAI land will now match the 30-year concession period given to GNIAL. This will make it easier to hand over the airport to the new joint venture company for development and operations.
The modernization project is expected to bring major improvements to passenger services, airport infrastructure, and cargo handling facilities. GNIAL plans to develop the airport in phases with the ultimate goal of handling up to 30 million passengers annually. This would make Nagpur Airport one of the leading airports in Central India.
The project is also expected to strengthen economic growth in the Vidarbha region by improving connectivity and boosting trade opportunities. Better cargo infrastructure will help industries and businesses in the region connect more efficiently with domestic and international markets.
The Government of India believes that combining private sector efficiency with government oversight will help create modern, high-quality aviation infrastructure. The redevelopment of Nagpur Airport is expected to generate employment opportunities, attract investment, and support regional development in the coming years.
