Nagpur: In a major boost to aviation infrastructure and economic development in Central India, the Union Cabinet chaired by Prime Minister Narendra Modi has approved the upgradation and modernization of Dr. Babasaheb Ambedkar International Airport through a long-term Public-Private Partnership (PPP) model.

The decision paves the way for transforming Nagpur Airport into a world-class aviation and cargo hub under the ambitious MIHAN India Limited (MIHAN) project.

Cabinet Approves Extension of AAI Land Lease

According to an official statement issued by the Government of India, the Cabinet has approved 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 extension will allow MIL to officially license the airport to GMR Nagpur International Airport Limited (GNIAL) for a period of 30 years from the Commercial Operation Date (COD).

Officials said the move marks a significant milestone in Nagpur’s journey toward becoming a major regional aviation and logistics hub.

Background of the MIHAN and PPP Project

In 2009, MIHAN India Limited was established as a joint venture between Airports Authority of India and Maharashtra Airport Development Company (MADC), with a 49:51 equity structure.

Although airport assets were transferred to MIL in 2009 for operations, the lease deed process faced delays due to land demarcation issues. As a result, AAI land had initially been leased to MIL only until August 2039.

In 2016, MIL floated a global tender to identify a private operator for Nagpur Airport under the PPP model. GMR Airports Limited emerged as the highest bidder with a revenue-sharing proposal that was later revised to 14.49% of gross revenue.

Legal Battle Ended in Supreme Court Verdict

The bidding process was annulled by MIL in March 2020, triggering a legal battle. GMR Airports challenged the cancellation before the Bombay High Court and later secured a favorable verdict from the Supreme Court of India.

Following the Supreme Court judgment dated September 27, 2024, MIL signed a concession agreement with GNIAL on October 8, 2024.

Nagpur Airport to Become World-Class Aviation Hub

With the latest Cabinet approval, the lease period of AAI land and the 30-year concession period of GNIAL will now run simultaneously, clearing the path for the formal transfer and large-scale modernization of the airport.

Under the phased development plan, GNIAL aims to transform Nagpur’s Dr. Babasaheb Ambedkar International Airport into a modern global-standard airport with the ultimate capacity to handle 30 million passengers annually.

The project is expected to significantly improve:

• Passenger facilities and terminal infrastructure
• Domestic and international connectivity
• Cargo handling and logistics capabilities
• Aviation-linked economic growth in the Vidarbha region
• Employment and investment opportunities

Major Boost for Vidarbha’s Economy and Connectivity

Government officials stated that the modernization project will strengthen Nagpur’s strategic importance as a cargo and transit hub in Central India.

The airport upgrade is also expected to accelerate industrial growth under the MIHAN project and improve regional connectivity for businesses, tourists, and exporters.

With private-sector efficiency combined with government oversight, the redevelopment of Nagpur Airport is being seen as a landmark infrastructure initiative for Maharashtra and India’s aviation sector.