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Cabinet approves upgradation of Nagpur International Airport through PPP and extends MIL land lease beyond 2039
The Union Cabinet approved upgrading Nagpur International Airport via a public-private partnership and extended the AAI land lease to MIL beyond August 6, 2039. This enables MIL to license the airport to GNIAL, aligning with GNIAL's 30-year concession. The timeline includes MIL's 2009 formation, a 2016 PPP bid, a 2020 court challenge, a 2024 concession and a 2026 cabinet decision.
Why It Matters
The decision advances infrastructure modernisation and private investment in Nagpur, potentially improving passenger and cargo services under government oversight and private-sector efficiency.
Timeline
6 Events
Cabinet approves upgradation and lease extension for Nagpur Airport
May 13, 2026
The Union Cabinet approved the upgradation and modernisation of Nagpur International Airport through a PPP and cleared the extension of the AAI land lease allotted to MIL beyond August 6, 2039. The extension will be co-terminus with GNIAL's 30-year concession, enabling MIL to license the airport to GNIAL. Information and Broadcasting Minister Ashwini Vaishnaw briefed media; the decision is expected to spur investment, modernisation, and improved passenger and cargo services.
Concession Agreement with GNIAL signed
October 8, 2024
MIL signed a Concession Agreement with GNIAL (GMR Nagpur International Airport Ltd), the second joint venture company, on October 8, 2024.
Supreme Court rules in GAL's favour
September 27, 2024
Pursuant to GAL's challenge, the Supreme Court of India ruled in GAL's favour on September 27, 2024 related to the bidding process.
MIL annuls bidding process
March 2020
MIL annulled the bidding process in March 2020. GAL challenged the annulment before the Bombay High Court.
GMR Airports emerges as highest bidder in 2016
2016
In 2016, MIL floated a global tender to identify a partner to operate the Nagpur airport under the PPP model. GMR Airports Ltd (GAL) emerged as the highest bidder, with an initial revenue share of 5.76% (later revised to 14.49% of gross revenue).
MIL formation by AAI and MADC
2009
In 2009, Airports Authority of India (AAI) and Maharashtra Airport Development Company Ltd (MADC) set up the joint venture MIL with equity shares of 49% and 51%, respectively. Airport assets of AAI were transferred to MIL for airport operation, but the lease deed was delayed due to land demarcation issues; the AAI land has been leased to MIL up to August 6, 2039.