NEW DELHI — The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the long-term lease extension of Airports Authority of India (AAI) land at Nagpur Airport, paving the way for its multi-crore modernization under a Public-Private Partnership (PPP) framework.
Resolving the Lease Timeline
The Cabinet’s decision extends the current AAI land lease—originally set to expire in August 2039—to run co-terminus with a 30-year concession period awarded to GMR Nagpur International Airport Limited (GNIAL). This structural adjustment allows MIHAN India Limited (MIL), a joint venture between AAI and the Maharashtra Government, to seamlessly hand over operational control to the private partner.
The Road to Privatization
The handover follows a protracted legal timeline regarding the operation of Dr. Babasaheb Ambedkar International Airport:
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2016 Tender: GMR Airports emerged as the highest bidder with a revised revenue share offer of 14.49% of Gross Revenue.
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Legal Battle: After MIL annulled the bidding process in March 2020, GMR successfully challenged the decision in the Bombay High Court and subsequently won a favorable verdict in the Supreme Court of India on September 27, 2024.
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Agreement: Following the apex court’s ruling, MIL and GNIAL signed an official Concession Agreement on October 8, 2024.
Transforming Central India’s Aviation Hub
Under the PPP framework, GNIAL will spearhead a phased modernization program designed to scale the airport’s ultimate capacity to 30 million passengers annually. The expansion is slated to significantly upgrade passenger amenities, expand cargo handling capabilities, and strengthen the broader economic infrastructure of Maharashtra’s Vidarbha region.
