The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the extension of the lease period for Airports Authority of India (AAI) land leased to MIHAN India Limited (MIL), enabling the modernisation and upgradation of Nagpur International Airport through a Public-Private Partnership (PPP) model.

The approval will allow MIL to license the airport to GMR Nagpur International Airport Limited (GNIAL) for a concession period of 30 years from the commercial operation date. The move is expected to accelerate the transformation of Nagpur’s airport into a major aviation and cargo hub under the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project.

MIL was formed in 2009 as a joint venture between Airports Authority of India and Maharashtra Airport Development Company with a 49:51 equity structure. While airport assets were transferred to MIL in 2009, land lease-related issues delayed the formal process, and the existing lease was valid only until August 6, 2039.

In 2016, MIL initiated a global bidding process to identify a private operator for the airport under the PPP model. GMR Airports Limited emerged as the highest bidder. Although the bidding process was later annulled in 2020, the decision was challenged by GMR Airports before the Bombay High Court and subsequently upheld by the Supreme Court in September 2024. Following the verdict, MIL signed the concession agreement with GNIAL in October 2024.

With the lease extension now aligned with GNIAL’s 30-year concession period, the airport can officially be handed over for development and operations.

GNIAL plans to transform Dr. Babasaheb Ambedkar International Airport into a world-class aviation facility through phased infrastructure development, targeting an ultimate passenger handling capacity of 30 million annually. The project is also expected to significantly strengthen cargo handling infrastructure and improve regional connectivity across Vidarbha and Central India.