New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the upgradation and modernisation of Nagpur International Airport through a long-term licence involving a private partner under the Public-Private Partnership (PPP) model.
The approval includes the extension of the lease period of land owned by the Airports Authority of India (AAI) and leased to MIHAN India Limited (MIL) beyond August 6, 2039. The move will enable MIL to grant a 30-year concession to GMR Nagpur International Airport Limited (GNIAL) from the Commercial Operation Date (COD).
The decision marks a key development in the expansion of Nagpur airport under the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project.
MIL was formed in 2009 as a joint venture between AAI and Maharashtra Airport Development Company (MADC), with an equity structure of 49:51. While airport assets were transferred to MIL in 2009, execution of the lease deed was delayed due to land demarcation issues. Subsequently, AAI land was leased to MIL till August 2039.
In 2016, MIL issued a global tender to identify a private operator for the airport under the PPP model. GMR Airports Limited emerged as the highest bidder with an initial quoted revenue share of 5.76 per cent, later revised to 14.49 per cent of gross revenue.
The bidding process was annulled by MIL in March 2020, following which GMR Airports challenged the decision before the Bombay High Court. The matter later reached the Supreme Court, which ruled in favour of GMR Airports in September 2024. Following the verdict, MIL signed a concession agreement with GNIAL on October 8, 2024.
According to the government, the extension of the lease period will align with the 30-year concession period granted to GNIAL and facilitate the transfer of airport operations to the new joint venture company.
The government said the project is expected to bring major investments, infrastructure modernisation and improved passenger and cargo services at Nagpur’s Dr. Babasaheb Ambedkar International Airport.
GNIAL plans to develop the airport in phases with an ultimate target of handling 30 million passengers annually. The redevelopment is also aimed at strengthening regional connectivity in Vidarbha and enhancing cargo handling infrastructure, positioning Nagpur as a major aviation hub in Central India.
(DD News)
