Cabinet approves extension of AAI land lease for Nagpur airport expansion under MIHAN project
New Delhi, May 13 (TNT): The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the extension of the lease period of Airports Authority of India (AAI) land leased to MIHAN India Limited (MIL) beyond August 6, 2039, enabling the company to license Nagpur Airport to GMR Nagpur International Airport Limited (GNIAL) for 30 years from the Commercial Operation Date (COD).
The decision marks a major milestone in the development of Nagpur airport under the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project, aimed at transforming the city into a key regional aviation and cargo hub.
MIHAN India Limited was formed in 2009 as a joint venture between AAI and Maharashtra Airport Development Company Ltd. (MADC) with a 49:51 equity structure.
Although airport assets were transferred to MIL in 2009, execution of the lease deed was delayed due to land demarcation issues. Subsequently, AAI land was leased to MIL up to August 6, 2039.
In 2016, MIL floated a global tender to identify a private partner to operate the airport under the Public-Private Partnership (PPP) model.
GMR Airports Ltd. emerged as the highest bidder with a quoted revenue share of 5.76 per cent, later revised to 14.49 per cent of gross revenue.
However, MIL annulled the bidding process in March 2020. The decision was challenged by GMR Airports before the Bombay High Court and later upheld by the Supreme Court of India in favour of GMR.
Following the Supreme Court’s judgement dated September 27, 2024, MIL signed a concession agreement with GMR Nagpur International Airport Ltd. on October 8, 2024.
With the lease extension now approved, the lease period of AAI land leased to MIL will become co-terminus with the 30-year concession period of GNIAL, paving the way for handing over the airport to the company.
The government said the move is expected to usher in a new phase of growth, infrastructure modernisation and improved passenger and cargo services at Nagpur airport through a combination of private sector efficiency and government oversight.
GNIAL plans to transform Dr. Babasaheb Ambedkar International Airport into a world-class aviation facility with phased expansion targeting an ultimate capacity of handling 30 million passengers annually, positioning Nagpur as a major aviation hub in Central India.
The project is also expected to significantly enhance cargo handling capabilities and strengthen economic infrastructure in the Vidarbha region.
TNT KS
