Top News

Nagpur Airport Modernization PM Modi Cabinet Decision: A major decision regarding Nagpur, Maharashtra has been taken in the cabinet meeting chaired by Prime Minister Narendra Modi. The Union Cabinet has approved to proceed with the modernization and upgradation of Nagpur International Airport under the Public-Private Partnership (PPP) model.

A joint venture has been formed under the Public-Private Partnership (PPP) model to modernize Nagpur International Airport and develop it into a world-class international aviation hub.

Union Minister Ashwini Vaishnav gave information

Union Minister Ashwini Vaishnav said that the Union Cabinet has approved the upgradation and modernization of Nagpur International Airport through long-term license involving the private partner under Public-Private Partnership (PPP).

The project includes long term operation and maintenance arrangements, extension of lease and land agreements and several infrastructure upgrades. These include ICAO-compliant facilities, runway improvements and other modernization works.

Approval to extend the lease of AAI land

The Union Cabinet today approved extension of the lease period of the land of Airport Authority of India (AAI), which was given on lease to MIL (Mihan India Limited), beyond 06 August 2039. This has been done so that MIL can grant the license to Nagpur Airport to the concessionaire i.e. GMR Nagpur International Airport Limited (GNIAL) for 30 years from the date of commercial operation. This is a major milestone in Nagpur Airport becoming a regional aviation hub under the Multi-Mode International Cargo Hub and Airport at Nagpur (MIHAN) project.

GMR will rejuvenate Nagpur airport

In 2016 MIL issued a global tender to select a partner to operate the airport under the PPP model. GMR Airports Ltd. (GAL) emerged as the highest bidder, quoting 5.76% revenue share. This was later revised to 14.49% of gross revenue. After this, MIL canceled the bidding process in March 2020.

The GAL successfully challenged this cancellation in the Bombay High Court. After this the Supreme Court also ruled in favor of the GAL. As per the Supreme Court judgment dated 27 September 2024, MIL signed a Concession Agreement with another JVC, i.e. GMR Nagpur International Airport Limited (GNIAL) on 8 October 2024.

A new era for Nagpur Airport

With the lease period of the AAI land leased to MIL extended beyond 06 October 2039, it will now run concurrently with the 30-year concession period of GNIAL, paving the way for handing over the airport to another JVC-GNIAL. This will begin a new phase of development and infrastructure advancement for Nagpur Airport. With private sector efficiency and government oversight, the airport will see investment, modernization and better passenger and cargo services.

GNIAL will handle the transformation of Nagpur’s Dr. Babasaheb Ambedkar International Airport into a world-class facility. It is planned for a phased development, with the aim of reaching a maximum capacity of handling 30 million passengers annually, making it a major airport in Central India. This change will not only enhance connectivity within the Vidarbha region but will also strengthen its economic infrastructure. Cargo handling capabilities will also increase significantly.