Cabinet approves Upgradation and Modernisation of Nagpur International Airport under PPP

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the Extension of Lease Period of the Airports Authority of India (AAI)’s land leased to MIL (MIHAN India Limited) beyond 06.08.2039, so as to enable MIL to license Nagpur Airport to the Concessionaire, viz. GMR Nagpur International Airport Limited (GNIAL) for 30 years since Commercial Operation Date (COD).

Key Decision
- Approval: Extension of lease period of Airports Authority of India (AAI) land leased to MIHAN India Limited (MIL) beyond 06 August 2039.
- Purpose: Enables MIL to license Nagpur Airport to GMR Nagpur International Airport Limited (GNIAL) for 30 years from Commercial Operation Date (COD).
- Model: Public-Private Partnership (PPP) with GMR as the private partner.

Background
- 2009: MIL formed as a joint venture between AAI (49%) and Maharashtra Airport Development Company Ltd. (MADC, 51%).
- 2016: MIL floated a global tender; GMR Airports Ltd. emerged as highest bidder.
- 2020: Bidding annulled by MIL, later challenged successfully by GMR in Bombay High Court and upheld by Supreme Court (Sept 2024).
- Oct 2024: Concession Agreement signed with GNIAL.

Impact & Vision
- Passenger Growth: Phased development to reach capacity of 30 million passengers annually.
- Cargo Hub: Strengthened cargo handling under the MIHAN project.
- Regional Connectivity: Positions Nagpur as a key aviation hub in Central India, boosting Vidarbha’s economic infrastructure.
- Modernisation: Private sector efficiency combined with government oversight to deliver world-class facilities.

This marks a turning point for Nagpur’s Dr. Babasaheb Ambedkar International Airport, aligning with India’s broader vision of robust aviation infrastructure.