Nagpur’s Aviation Ambitions Take Flight: Union Cabinet Greenlights PPP Modernisation By Extending Lease Period To MIHAN

Mumbai: The Union Cabinet approved the long-awaited upgradation and modernisation of Nagpur’s Dr. Babasaheb Ambedkar International Airport. The decision clears the final administrative hurdles for a comprehensive public-private partnership (PPP) makeover, paving the way for the airport to be handed over to GMR Nagpur International Airport Limited (GNIAL).

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Airport to be transformed into world-class gateway under MIHAN

The cabinet approval marks a major milestone in Nagpur airport’s journey to becoming a regional aviation hub under the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project. The cabinet approved the extension of the Airports Authority of India (AAI) land lease to MIHAN India Limited (MIL), which was previously set to expire in August 2039, to ensure it is co-terminus with GNIAL’s 30-year concession period, starting from the commercial operation date.

Under the new agreement, GNIAL is tasked with transforming the facility into a world-class gateway. The modernisation plan focused on expanding the airport’s capacity to handle 30 million passengers annually, positioning Nagpur as the country's logistics nerve and stimulating the economic infrastructure of the entire Vidarbha region.

Amit Shah congratulates Nagpur; says move elevates global stature

Union home minister Amit Shah, on Wednesday, congratulated the people of Nagpur upon the cabinet’s decision. “The move will elevate Nagpur's stature on the map as a global destination and open its glorious heritage for a bigger global audience,” he said.

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Notably, the journey of Nagpur Airport’s expansion has been underway since 2009, when MIL was formed by AAI and Maharashtra Airport Development Company Ltd. (MADC) as a joint venture company with an equity structure of 49:51, respectively. Although AAI’s airport assets were transferred to MIL in 2009 for airport operations, the lease deed was delayed due to land demarcation issues. Subsequently, AAI land was leased to MIL through August 6, 2039.

In 2016, GMR Airports Ltd. emerged as the highest bidder for MIL’s global tender to onboard an airport operator under the PPP model. However, MIL annulled the bidding process in March 2020 after GMR increased its demand for revenue share from the initially quoted 5.76% to 14.49% of gross revenue. This annulment was then challenged by GMR before the Bombay High Court, which ruled in its favour. Ultimately, MIL signed a concession agreement with a second joint venture company, GNIAL, in October 2024 after the Supreme Court’s judgement.

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