The Union Cabinet has approved the extension of the Airports Authority of India (AAI) land lease to MIHAN India Limited beyond August 6, 2039, clearing the path for the long-term modernisation and expansion of Dr Babasaheb Ambedkar International Airport in Nagpur under a Public Private Partnership (PPP) model. This long-awaited decision comes over 18 months after Prime Minister Narendra Modi laid the foundation stone for the upgrade on October 9, 2024, via video conferencing.
Key Approvals and Project Scope
The decision allows MIHAN India Limited to grant a 30-year concession to GMR Nagpur International Airport Limited from the Commercial Operation Date. This marks a significant step in transforming Nagpur into a major aviation and cargo hub under the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project. The project aims to increase the airport’s ultimate handling capacity to 30 million passengers annually, along with substantial upgrades to cargo handling infrastructure.
Chief Minister Devendra Fadnavis expressed elation over the approval, stating, “Only a few clearances were pending for the airport transfer. I thank Prime Minister Narendra Modi and the Union Cabinet for approving the project today. We will build a beautiful and world-class airport in Nagpur.” Nagpur airport director Abid Ruhi, associated with the project since its inception, told TOI that the Centre’s approval would significantly boost the city’s overall development. “GMR will not only renovate the existing airport but also build a new international-standard terminal. It will construct a second runway and provide facilities comparable to top airports. The second runway will strengthen Nagpur’s ambition of becoming a logistics capital,” he said.
Background: Legal and Administrative Journey
The Cabinet approval follows a prolonged legal and administrative process spanning more than a decade. MIHAN India Limited was formed in 2009 as a joint venture between the AAI and the Maharashtra Airport Development Company with a 49:51 equity structure. Although airport assets were transferred to the joint venture in 2009, execution of the land lease deed was delayed due to land demarcation issues.
In 2016, MIHAN India Limited floated a global tender to identify a private operator under the PPP model. GMR Airports Limited emerged as the highest bidder with an initial revenue-sharing offer of 5.76%, later revised to 14.49% of gross revenue. However, MIHAN India Limited annulled the bidding process in March 2020, triggering litigation. The annulment was challenged before the Nagpur bench of the Bombay High Court and later upheld in favour of GMR by the Supreme Court in its September 27, 2024, judgment. Following the verdict, the concession agreement was signed between MIHAN India Limited and GMR Nagpur International Airport Limited on October 8, 2024.
Expected Impact and Future Plans
Officials said the latest Cabinet decision aligns the lease tenure with the full 30-year concession period, enabling the formal transfer and phased development of the airport infrastructure. Under the proposed expansion plan, GMR Nagpur International Airport Limited will undertake phased modernisation, including state-of-the-art facilities for international cargo and passenger services. The project aims to position Nagpur as a strategic logistics and aviation centre in Central India.
The expansion is expected to improve regional connectivity across Vidarbha while boosting economic activity linked to trade, logistics, manufacturing, and services. The Centre described the project as part of its broader push for infrastructure-led growth and enhanced private participation in the aviation sector. With the modernisation plan, Nagpur is set to become a key player in India's aviation landscape, strengthening both domestic and international connectivity.
