The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the extension of the lease period of Airports Authority of India (AAI) land leased to MIHAN India Limited (MIL) beyond August 6, 2039. The decision will enable MIL to license Nagpur Airport to the concessionaire GMR Nagpur International Airport Limited (GNIAL) for a 30-year period from the Commercial Operation Date.
The move is being seen as a major step forward in the development of the Nagpur airport infrastructure development project, particularly under the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) initiative, aimed at transforming the city into a major aviation and logistics hub.
Key Boost to Nagpur Airport Development
Officials said the approval marks an important milestone in the Nagpur airport infrastructure development project, ensuring long-term clarity in operations and investment planning. The lease extension will align the AAI land agreement with the 30-year concession period granted to GNIAL, allowing smoother execution of future expansion plans.
Under the arrangement, MIL—formed as a joint venture between AAI and Maharashtra Airport Development Company Ltd. (MADC)—will facilitate the handover of operations to GNIAL, a subsidiary of GMR Airports.
Long Legal and Administrative Journey
The project has seen multiple phases since 2009, when MIL was created to operate the airport under a joint venture model. Later, a global bidding process in 2016 saw GMR Airports Ltd. emerging as the highest bidder, leading to a long legal dispute that eventually reached the Supreme Court of India, which ruled in favor of GMR.
Following the court verdict in September 2024, a concession agreement was signed between MIL and GNIAL in October 2024, clearing the path for operational control. The latest Cabinet decision now strengthens the Nagpur airport infrastructure development project by removing lease uncertainty.
Vision for a Modern Aviation Hub
The government said the Nagpur airport infrastructure development project will transform Dr. Babasaheb Ambedkar International Airport into a world-class aviation facility. The upgraded airport is expected to eventually handle up to 30 million passengers annually with improved cargo and logistics capacity.
Officials added that the integration of private sector efficiency and government oversight will accelerate modernization, infrastructure expansion, and regional connectivity. The Nagpur airport infrastructure development project is expected to significantly boost economic activity in the Vidarbha region while strengthening Central India’s aviation network.
The Cabinet emphasized that this decision supports India’s broader infrastructure development vision, positioning Nagpur as a key hub for passenger and cargo movement in the coming decades.