The Union Cabinet chaired by Prime Minister Narendra Modi has approved the extension of the lease period of Airports Authority of India (AAI) land leased to MIHAN India Limited beyond August 6, 2039, clearing the way for MIL to license Nagpur Airport to GMR Nagpur International Airport Limited for 30 years from the Commercial Operation Date (COD).
The decision marks a significant milestone for the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project and is expected to accelerate the transformation of Dr. Babasaheb Ambedkar International Airport into a major aviation and cargo hub in Central India.
MIL, a joint venture company formed in 2009 between AAI and Maharashtra Airport Development Company with a 49:51 equity structure, was created to oversee the airport’s development and operations. Although airport assets were transferred to MIL in 2009, execution of the lease deed was delayed due to land demarcation issues, resulting in the AAI land being leased only up to 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 emerged as the highest bidder with an initial revenue share quote of 5.76 per cent, later revised to 14.49 per cent of gross revenue. However, MIL annulled the bidding process in March 2020, leading to a legal battle. The decision was challenged by GAL before the Bombay High Court, and later upheld in favour of GAL by the Supreme Court of India. Following the Supreme Court judgment dated September 27, 2024, MIL signed the concession agreement with GNIAL on October 8, 2024.
With the Cabinet now approving the extension of the AAI land lease, the concession period of GNIAL will become co-terminus with the 30-year operational period, paving the way for the formal handover and large-scale modernization of the airport.
Under the proposed phased development plan, GNIAL aims to transform Nagpur Airport into a world-class aviation facility with the ultimate capacity to handle 30 million passengers annually. The project is expected to significantly improve passenger amenities, strengthen cargo handling infrastructure, enhance regional connectivity across Vidarbha, and boost economic growth in Central India.
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