The Union Cabinet has approved the extension of the lease period of Airports Authority of India (AAI) land leased to MIHAN India Limited beyond 6 August 2039, paving the way for the long-term modernisation and upgradation of Nagpur International Airport under the Public Private Partnership model.
The approval will enable MIHAN India Limited to license Nagpur Airport to GMR Nagpur International Airport Limited for 30 years from the commercial operation date.
According to a statement by the Ministry of Civil Aviation on Wednesday, 13 May, the decision marks a major milestone in Nagpur airport’s journey towards becoming a regional aviation hub under the Multi-modal International Cargo Hub and Airport at Nagpur project.
In 2009, a joint venture company, MIHAN India Limited, was formed by the Airports Authority of India and Maharashtra Airport Development Company Limited with an equity structure of 49:51.
Although AAI’s airport assets were transferred to MIHAN India Limited in 2009 for airport operations, the lease deed was delayed due to land demarcation issues.
Subsequently, AAI land was leased to MIHAN India Limited up to 6 August 2039.
In 2016, MIHAN India Limited floated a global tender to identify a partner to operate the airport under the PPP model.
GMR Airports Limited emerged as the highest bidder with a quoted revenue share of 5.76%, which was later revised to 14.49% of gross revenue.
MIHAN India Limited annulled the bidding process in March 2020.
The annulment was successfully challenged by GMR Airports Limited before the Bombay High Court.
The Supreme Court of India also ruled in favour of GMR Airports Limited.
Following the Supreme Court judgment dated 27 September 2024, MIHAN India Limited signed a concession agreement with GMR Nagpur International Airport Limited on 8 October 2024.
With the extension of the lease period beyond 6 August 2039, the lease will now become co-terminus with the 30-year concession period of GMR Nagpur International Airport Limited.
The ministry said this will pave the way for handing over the airport to GMR Nagpur International Airport Limited and is expected to usher in a new era of growth and infrastructure advancement for Nagpur Airport.
The government said the airport is expected to see significant investment, modernisation and improved passenger and cargo services with private sector efficiency and government oversight.
GMR Nagpur International Airport Limited will take up the transformation of Dr Babasaheb Ambedkar International Airport in Nagpur into a world-class facility.
The phased development is envisaged to reach an ultimate capacity of handling 30 million passengers annually, positioning the airport as a key aviation facility in Central India.
The ministry said the transformation will enhance connectivity within the Vidarbha region and strengthen its economic infrastructure.
Cargo handling capabilities at the airport are also expected to be significantly improved under the modernisation plan.
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