Home›India›Cabinet›Cabinet approves Upgradation and Modernisation of Nagpur Int...
Date: 2026-05-13Category: Press ReleaseState: Union GovernmentCountry: India
Cabinet approves Upgradation and Modernisation of Nagpur International Airport through long term license involving Private Partner under Public Private Partnership (PPP)
**Executive Summary**
The Union Cabinet has approved the extension of the Airports Authority of India (AAI) land lease to MIHAN India Limited (MIL) beyond August 6, 2039. This extension aligns the lease with a 30-year concession period granted to GMR Nagpur International Airport Limited (GNIAL) to facilitate the airport’s modernization under a Public-Private Partnership (PPP). The project aims to transform Nagpur Airport into a regional aviation hub, following a Supreme Court ruling and the subsequent signing of a Concession Agreement on October 8, 2024.
**Key Points / Main Content**
**Lease and Concession Framework**
* The AAI land lease to MIL is extended to be co-terminus with GNIAL’s 30-year concession period.
* GNIAL will operate the airport for 30 years starting from the Commercial Operation Date (COD).
* GMR Airports Ltd. (GAL) will provide a revised revenue share of 14.49% of Gross Revenue to the authority.
**Historical and Legal Context**
* MIL was formed in 2009 as a Joint Venture Company between AAI (49%) and Maharashtra Airport Development Company Ltd. (51%).
* The project follows a legal victory for GAL in the Bombay High Court and the Supreme Court, which overturned a previous bid annulment.
* The formal Concession Agreement was signed on October 8, 2024, pursuant to the Supreme Court judgment dated September 27, 2024.
**Modernization and Capacity Targets**
* The airport will be upgraded into a world-class facility through phased development.
* The ultimate capacity is designed to handle 30 million passengers annually.
* The plan includes significant investments in infrastructure, cargo handling capabilities, and passenger services.
**Impact Analysis**
**GMR Nagpur International Airport Limited (GNIAL)**
**Impact**
Acts as the private partner responsible for the investment, modernization, and long-term operation of the airport.
**Action Required**
Must commence the phased development of the facility to meet the target capacity of 30 million passengers.
**MIHAN India Limited (MIL)**
**Impact**
Authorized to license the airport to GNIAL for 30 years following the Cabinet's approval of the land lease extension.
**Action Required**
Proceed with the handover of the airport to GNIAL and maintain government oversight as part of the JVC structure.
**Vidarbha Region and Central India**
**Impact**
The region is expected to see enhanced connectivity, a stronger economic infrastructure, and a boost in cargo handling capabilities.
**Action Required**
No specific action required from this stakeholder group; they are the primary beneficiaries of the infrastructure advancement.
**Airports Authority of India (AAI)**
**Impact**
Retains 49% equity in the original JVC (MIL) while facilitating the transfer of operations to a private partner.
**Action Required**
Ensure the extended lease deed is processed to match the concession timelines.
Key Entities Referenced
GMR Nagpur International Airport Limited (GNIAL): The private concessionaire and partner responsible for the 30-year operation, modernization, and phased development of Nagpur Airport under a PPP model.
Dr. Babasaheb Ambedkar International Airport, Nagpur: The specific facility undergoing transformation into a world-class regional aviation hub with a planned capacity of 30 million passengers annually.
MIHAN India Limited (MIL): A joint venture between AAI and MADC that manages the airport assets and signed the concession agreement with the private partner.
Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN): The overarching regional development project and strategic framework under which the airport modernization is being executed.
Airports Authority of India (AAI): The land-owning regulator whose lease extension was approved by the Cabinet to facilitate the long-term licensing of the airport to the private partner.
Cabinet
Cabinet approves Upgradation and
Modernisation of Nagpur International Airport
through long term license involving Private
Partner under Public Private Partnership (PPP)
Posted On: 13 MAY 2026 3:41PM by PIB Delhi
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi today has approved the Extension
of Lease Period of the Airports Authority of India (AAI)’s land leased to MIL (MIHAN India Limited)
beyond 06.08.2039, so as to enable MIL to license Nagpur Airport to the Concessionaire, viz. GMR
Nagpur International Airport Limited (GNIAL) for 30 years since Commercial Operation Date (COD).
This marks a major milestone in Nagpur airport’s journey to becoming a regional aviation hub under the
Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project.
In 2009, a Joint Venture Company (JVC)- MIL was formed by AAI and Maharashtra Airport Development
Company Ltd. (MADC) with equity structure of 49:51 respectively. Though Airport assets of AAI were
transferred to MIL in 2009 for airport operation, the lease deed got delayed due to land demarcation
issues. Subsequently, AAI land has been leased to MIL up to 06.08.2039.
In 2016, MIL floated a global tender for identifying a Partner to operate the airport under the Public-
Private Partnership (PPP) model. GMR Airports Ltd. (GAL) emerged as the highest bidder, with quoted
revenue share of 5.76%. This was later revised to 14.49% of Gross Revenue. Subsequently, MIL annulled
the bidding process in March, 2020. This annulment was successfully challenged by GAL before Hon'ble
Bombay High Court. Thereafter, Hon’ble Supreme Court of India also ruled in favor of GAL. Pursuant to
Supreme Court Judgement dated 27th September, 2024, MIL signed Concession Agreement with 2nd
JVC, i.e. GMR Nagpur International Airport Ltd. (GNIAL) on 8th October, 2024.
A New Era for Nagpur Airport :
With extension of Lease Period of the AAI land leased to MIL beyond 06.08.2039, it would now become
co-terminus with the 30 years Concession Period of GNIAL, paving the way for handing over of airport to
2nd JVC-GNIAL. This is expected to usher in a new era of growth and infrastructure advancement for
Nagpur Airport. With private sector efficiency and government oversight, the Airport is poised to see
significant investment, modernization, and improved passenger and cargo services — Government of
India's vision for robust infrastructure development in the aviation sector.
GNIAL will take up the transformation of Nagpur's Dr. Babasaheb Ambedkar International Airport into a
world-class facility with phased development envisaged to reach the ultimate capacity of handling 30
million passengers annually, positioning it as a key Airport in Central India. This transformation is set to
not only enhance connectivity within the Vidarbha region, but also strengthen its economic infrastructure.
Cargo handling capabilities would also be significantly boosted.
***MJPS
(Release ID: 2260629) Visitor Counter : 3629
Read this release in: Urdu , ही , Marathi , Bengali , Assamese , Punjabi , Gujarati , Odia , Tamil , Telugu , Kannada , Malayalam