The much-awaited transformation of Nagpur’s Dr Babasaheb Ambedkar International Airport, which was to be initiated by GMR Airports Limited (GAL) in April, 2025, will now commence. The Union Cabinet chaired by the Prime Minister Narendra Modi on Wednesday has approved the extension of lease period of the Airports Authority of India (AAI)’s land leased to MIL (MIHAN India Limited) beyond August 6, 2039, so as to enable MIL to license Nagpur Airport to GMR Nagpur International Airport Limited (GNIAL) for 30 years from the Commercial Operation Date (COD). As planned, the upgradation and modernisation of Nagpur International Airport is to be carried out through long-term license involving a private partner under Public Private Partnership (PPP).

 

This marks a major milestone in Nagpur airport’s journey to becoming a regional aviation hub under 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 (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 August 6, 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 Bombay High Court. Thereafter, Supreme Court of India also ruled in favour of GAL. Pursuant to Supreme Court judgement dated September 27, 2024, MIL signed Concession Agreement with 2nd JVC, i.e. GMR Nagpur International Airport Ltd. (GNIAL) on October 8, 2024.