Cabinet Approves Modernisation Of Nagpur International Airport

15 May 2026 CW Team

The decision was presented as a major milestone for the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project. In 2009 a joint venture company, MIHAN India Limited (MIL), was formed by the Airports Authority of India (AAI) and Maharashtra Airport Development Company (MADC) with an equity split of 49:51.

Airport assets were transferred to MIL in 2009 but the formal lease deed was delayed owing to land demarcation, and the arrangement had been limited to 06.08.2039. The extension removes that constraint and aligns the land tenure with the concession timeline.

In 2016 MIL issued a global tender to identify a private partner and GMR Airports Limited (GAL) emerged as highest bidder, with a quoted revenue share later revised to 14.49 per cent of gross revenue. MIL annulled the process in March 2020; GAL challenged the annulment, and the courts ruled in its favour, leading to a concession agreement with GNIAL on eight October, 2024 following the Supreme Court judgement dated 27 September, 2024.

With the lease extension made co-terminus with the 30 year concession period, handing over to the concessionaire can proceed, enabling a phased transformation of Dr. Babasaheb Ambedkar International Airport into a world class facility. The development plan envisages reaching an ultimate handling capacity of 30 mn passengers annually and significant enhancement of cargo handling capabilities. The project is expected to strengthen regional connectivity across Vidarbha and support broader economic infrastructure objectives.

Private sector efficiency combined with government oversight is intended to attract investment and modernisation, improving both passenger and cargo services. The measure aligns with the Government of India's stated strategy to expand robust aviation infrastructure.

The Union Cabinet chaired by the Prime Minister approved extending the lease of land held by the Airports Authority of India (AAI) to MIHAN India Limited (MIL) beyond 06.08.2039, enabling MIL to license Nagpur International Airport to GMR Nagpur International Airport Limited (GNIAL) for 30 years from the commercial operation date. The decision was presented as a major milestone for the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project. In 2009 a joint venture company, MIHAN India Limited (MIL), was formed by the Airports Authority of India (AAI) and Maharashtra Airport Development Company (MADC) with an equity split of 49:51. Airport assets were transferred to MIL in 2009 but the formal lease deed was delayed owing to land demarcation, and the arrangement had been limited to 06.08.2039. The extension removes that constraint and aligns the land tenure with the concession timeline. In 2016 MIL issued a global tender to identify a private partner and GMR Airports Limited (GAL) emerged as highest bidder, with a quoted revenue share later revised to 14.49 per cent of gross revenue. MIL annulled the process in March 2020; GAL challenged the annulment, and the courts ruled in its favour, leading to a concession agreement with GNIAL on eight October, 2024 following the Supreme Court judgement dated 27 September, 2024. With the lease extension made co-terminus with the 30 year concession period, handing over to the concessionaire can proceed, enabling a phased transformation of Dr. Babasaheb Ambedkar International Airport into a world class facility. The development plan envisages reaching an ultimate handling capacity of 30 mn passengers annually and significant enhancement of cargo handling capabilities. The project is expected to strengthen regional connectivity across Vidarbha and support broader economic infrastructure objectives. Private sector efficiency combined with government oversight is intended to attract investment and modernisation, improving both passenger and cargo services. The measure aligns with the Government of India's stated strategy to expand robust aviation infrastructure.

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