Cabinet Approves Extension Of AAI Land Lease For Nagpur Airport

The approval aligns the AAI land lease with the 30-year concession granted to GMR Nagpur International Airport Ltd (GNIAL), enabling formal handover of the facility to GNIAL for development and operations.

MIHAN Infrastructure Ltd (MIL) was formed in 2009 as a joint venture between AAI and Maharashtra Airport Development Company Ltd with an equity split of 49:51, and airport assets were transferred that year for operational purposes.

Execution of the lease deed was delayed by land demarcation issues and the AAI land was leased to MIL until six August 2039. In 2016 MIL invited global bids for a public-private partnership and 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.

MIL annulled the process in March 2020, a decision challenged in the Bombay High Court and ultimately upheld by the Supreme Court. Following the Supreme Court judgment dated 27 September 2024, MIL signed the concession agreement with GNIAL on eight October 2024.

GNIAL has outlined phased development to transform Dr Babasaheb Ambedkar International Airport into a world-class facility and plans to scale capacity to handle up to 30 million (mn) passengers annually.

The expansion is expected to strengthen the airport's role as a major aviation hub in central India and to improve connectivity across the Vidarbha region. Authorities also anticipate enhancements to cargo handling infrastructure which underpin the MIHAN project rationale.