New Delhi, May 13, 2026: The Union Cabinet, chaired by Narendra Modi, has approved the extension of the lease period for land owned by Airports Authority of India (AAI), enabling the long-term development of Dr. Babasaheb Ambedkar International Airport, Nagpur under the public-private partnership (PPP) model.
🏗️ 30-Year Concession to Boost Airport Development
The decision allows MIHAN India Limited (MIL) to license the airport to GMR Nagpur International Airport Limited (GNIAL) for 30 years from the Commercial Operation Date (COD).
- Lease extended beyond August 6, 2039
- Now aligned with the full concession period
- Ensures smooth transfer and long-term planning
🚀 Major Boost to MIHAN Project
The move is a key step in accelerating the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project, aimed at transforming Nagpur into a major aviation and logistics hub.
⚖️ Legal Hurdles Resolved
- MIL had floated a global tender in 2016
- GMR Airports emerged as the highest bidder
- Bidding was annulled in 2020, leading to legal disputes
- Both the Bombay High Court and the Supreme Court of India ruled in favour of GMR
- Concession agreement signed on October 8, 2024
🏢 Background of the Project
- MIL formed in 2009 as a JV between:
- Airports Authority of India (49%)
- Maharashtra Airport Development Company (51%)
- Lease execution delays due to land demarcation issues initially limited tenure till 2039
🌍 World-Class Aviation Hub Vision
The government said the approval will:
- Enable modernisation and infrastructure expansion
- Increase passenger handling capacity to 30 million annually
- Combine private sector efficiency with public oversight
