Govt Clears Nagpur Airport Modernisation Under PPP Model
Centre approves long-term lease extension to transform Nagpur airport into major aviation and cargo hub
- Cabinet approves Nagpur airport modernisation plan
- GMR-led firm to operate airport under PPP model
- Airport capacity planned for 30 million passengers annually
- Cargo handling and regional connectivity set for major boost
GG News Bureau
New Delhi, 13th May: The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the upgradation and modernisation of Dr Babasaheb Ambedkar International Airport under the Public-Private Partnership (PPP) model.
The Cabinet approved the extension of the lease period of Airports Authority of India (AAI) land leased to MIHAN India Limited beyond August 6, 2039.
The move will enable MIHAN India Limited to grant a 30-year concession to GMR Nagpur International Airport Limited from the commercial operation date.
Major Push for MIHAN Project
Officials said the approval marked a major milestone for the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project.
MIHAN India Limited was formed in 2009 as a joint venture between Airports Authority of India and Maharashtra Airport Development Company with a 49:51 equity structure.
The airport assets were transferred to MIL in 2009, although lease-related issues were delayed due to land demarcation matters.
GMR to Develop World-Class Airport
The PPP bidding process for airport operations was initiated in 2016, with GMR Airports Limited emerging as the highest bidder.
Following legal proceedings and a Supreme Court ruling in favour of GMR, the concession agreement with GNIAL was signed on October 8, 2024.
Officials said the extended lease period would now align with the 30-year concession period, paving the way for airport handover and infrastructure expansion.
Capacity to Reach 30 Million Passengers
GNIAL plans to transform Nagpur airport into a world-class aviation facility through phased development.
The airport is expected to achieve an ultimate capacity of handling 30 million passengers annually, positioning it as a major aviation hub in Central India.
Authorities said the project would significantly strengthen passenger services, cargo handling and regional connectivity across Vidarbha and nearby regions.
The Centre said the modernisation drive aligned with the government’s broader vision for infrastructure growth and aviation sector expansion.
