The Union Cabinet approves an extension of AAI’s land lease to enable GMR Nagpur International Airport Limited to operate Dr. Babasaheb Ambedkar International Airport for 30 years.
The Union Cabinet chaired by Prime Minister Narendra Modi approved on May 13, 2026 the extension of the Airports Authority of India (AAI)’s land lease to MIHAN India Limited (MIL) beyond August 6, 2039, enabling MIL to license Nagpur’s Dr. Babasaheb Ambedkar International Airport to GMR Nagpur International Airport Limited (GNIAL) for a 30-year concession period from the Commercial Operation Date. The decision is a key milestone in the airport’s development under the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project.
MIL, a joint venture formed in 2009 between AAI and Maharashtra Airport Development Company Limited (MADC) with an equity structure of 49:51 respectively, had leased AAI land only until August 6, 2039. The extended lease now runs co-terminus with GNIAL’s 30-year concession period, paving the way for the formal handover of the airport.
The path to this approval involved protracted legal proceedings. In 2016, MIL floated a global tender under the Public-Private Partnership (PPP) model, with GMR Airports Limited (GAL) emerging as the highest bidder at a quoted revenue share of 5.76%, later revised to 14.49% of gross revenue. MIL annulled the bidding process in March 2020, a decision successfully challenged by GAL before the Bombay High Court and subsequently upheld by the Supreme Court of India in its judgement dated September 27, 2024.
MIL signed the Concession Agreement with GNIAL on October 8, 2024. GNIAL will now undertake phased development of the airport with an ultimate passenger handling capacity of 30 million annually, strengthening aviation connectivity across the Vidarbha region and boosting cargo handling capabilities.
Source: Press Information Bureau (PIB)
