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’s (AAI) land lease to MIHAN India Limited (MIL) beyond August 2039. This extension enables the licensing of Nagpur International Airport to GMR Nagpur International Airport Limited (GNIAL) for a 30-year concession period. The project aims to modernize the airport into a world-class facility with a capacity of 30 million passengers annually under a Public-Private Partnership (PPP) model.
**Key Points / Main Content**
**Lease and Concession Terms**
* **Lease Extension:** AAI land leased to MIL is extended beyond August 6, 2039, to become co-terminus with the concession period.
* **Concession Period:** GNIAL is granted a 30-year license starting from the Commercial Operation Date (COD).
* **Revenue Share:** The winning bidder, GMR Airports Ltd. (GAL), committed to a revised revenue share of 14.49% of gross revenue.
**Legal and Administrative Background**
* **JVC Formation:** MIL was established in 2009 as a joint venture between AAI (49%) and Maharashtra Airport Development Company Ltd. (51%).
* **Judicial Ruling:** The project follows a September 27, 2024, Supreme Court judgment in favor of GAL, leading to the signing of the Concession Agreement on October 8, 2024.
* **Project Context:** This initiative is a critical component of the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project.
**Infrastructure and Development Goals**
* **Capacity Expansion:** Development will be phased to reach an ultimate capacity of 30 million passengers per year.
* **Service Upgrades:** The partnership focuses on private sector efficiency to improve passenger services and cargo handling.
* **Regional Impact:** The project is designed to enhance connectivity in the Vidarbha region and strengthen Central India's economic infrastructure.
**Impact Analysis**
**GMR Nagpur International Airport Limited (GNIAL)**
**Impact**
Secures the long-term right to operate and modernize the airport following a favorable Supreme Court ruling.
**Action Required**
Undertake phased development of the airport to transform it into a world-class facility and meet passenger capacity targets.
**MIHAN India Limited (MIL)**
**Impact**
Enabled by the Cabinet to formally license the airport to the private partner for a 30-year term.
**Action Required**
Facilitate the handover of the airport to GNIAL and ensure compliance with the co-terminus lease terms.
**Airports Authority of India (AAI)**
**Impact**
Retains interest as a 49% equity holder in MIL while facilitating the PPP model through extended land leasing.
**Action Required**
Formalize the extension of the land lease deed beyond the original 2039 expiry date.
**Regional Stakeholders and Passengers**
**Impact**
Benefit from significantly boosted cargo capabilities, improved regional connectivity, and modernized aviation infrastructure.
**Action Required**
No direct action is required from this group; however, they are the primary beneficiaries of the upgraded services.
Key Entities Referenced
Dr. Babasaheb Ambedkar International Airport, Nagpur: The central infrastructure asset undergoing modernization to reach a capacity of 30 million passengers annually under a 30-year concession.
Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project: The strategic initiative aimed at developing Nagpur into a regional aviation and cargo hub, providing the framework for the airport's upgradation.
GMR Nagpur International Airport Limited (GNIAL): The private concessionaire and joint venture partner responsible for the investment, modernization, and operation of the airport.
Airports Authority of India (AAI): The primary regulator and landowner that extended the lease period to enable the long-term license for the private partner.
MIHAN India Limited (MIL): A joint venture between AAI and MADC that holds the airport assets and signed the Concession Agreement with the private partner.
Ministry of Civil Aviation
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 3:43PM 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
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