New Delhi: The Union Cabinet approved the Nagpur airport upgradation plan under the Public Private Partnership (PPP) model by extending the lease period of Airports Authority of India (AAI) land beyond 06.08.2039. The decision enables long-term licensing of the airport to a private concessionaire for 30 years from the Commercial Operation Date.
The approval allows MIL (MIHAN India Limited) to license Nagpur Airport to GMR Nagpur International Airport Limited (GNIAL). Moreover, the lease extension ensures that the land tenure aligns with the concession period. Therefore, the arrangement provides operational clarity for the modernization project.
The government described the move as a major milestone for the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project. In addition, officials said the decision would support infrastructure growth and improve airport services.
Nagpur airport upgradation under PPP model
The airport development follows earlier structural changes involving MIL, formed in 2009 as a joint venture between AAI and Maharashtra Airport Development Company Ltd. Although airport assets were transferred in 2009, lease formalities were delayed due to land demarcation issues. Consequently, the AAI land lease was later extended up to 06.08.2039.
In 2016, MIL initiated a global tender under the PPP framework. GMR Airports Ltd. emerged as the highest bidder. However, the bidding process was later annulled in 2020. Subsequently, the matter was challenged in court. The Hon’ble Supreme Court ruled in favour of the bidder on 27 September 2024. Thereafter, MIL signed the concession agreement with GNIAL on 8 October 2024.
Under the approved structure, GNIAL will undertake phased development of Dr. Babasaheb Ambedkar International Airport. Furthermore, the plan targets an ultimate capacity of 30 million passengers annually. The project is expected to strengthen connectivity in the Vidarbha region.
Meanwhile, cargo handling capacity will also expand. With private sector participation and government oversight, the airport is set for modernization. Therefore, authorities expect improved passenger services, increased investment, and enhanced regional economic growth.
