NEW DELHI, May 13 -- The Union Cabinet has approved a proposal to extend the lease tenure of Airports Authority of India (AAI) land allotted to MIHAN India Limited (MIL), paving the way for the handing over of management of Nagpur Airport to GMR Nagpur International Airport Limited (GNIAL).

Under the revised agreement framework, the airport's operation rights will now extend for 30 years following the Cabinet's approval. The decision is expected to provide fresh momentum to the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project and support the expansion of operations at Dr Babasaheb Ambedkar International Airport.

The development is also expected to strengthen aviation and cargo infrastructure in central India.

MIL was established in 2009 as a joint venture between AAI and Maharashtra Airport Development Company (MADC) with a 49:51 shareholding pattern. Although airport assets were transferred to MIL the same year, leasing issues persisted due to unresolved boundary demarcation concerns.

Earlier, access to AAI land had been permitted only until August 6, 2039.

In 2016, MIL invited global bids for operating the airport under a public-private partnership model. GMR Airports Limited emerged as the highest bidder by offering a revenue share proposal of 14.49 per cent. However, MIL cancelled the bidding process in 2020, triggering legal disputes. The Bombay High Court later ruled in favour of GMR Airports Ltd, and the verdict was subsequently upheld by the Supreme Court.

Following the Supreme Court's ruling in September 2024, MIL signed a concession agreement with GNIAL in October 2024. The agreement formalised the operational framework after the conclusion of legal proceedings.

With the Cabinet's latest approval, the extended lease period will now align with GNIAL's 30-year concession term beyond 2039, facilitating the transfer process and enabling long-term redevelopment of the airport site.

The synchronisation of lease and concession timelines is expected to support a smoother operational transition and faster project implementation.

The airport expansion project will be executed in phases and is designed to handle 30 million passengers annually. The plan also includes major cargo infrastructure upgrades aimed at improving connectivity across Vidarbha and central India.

Published by HT Digital Content Services with permission from Millennium Post.