Nagpur airport updgrade cleared

Blitz Bureau

NEW DELHI: The Union Cabinet chaired by Prime Minister Narendra Modi has approved the extension of lease period of the Airports Authority of India (AAI)’s land leased to MIL (Mihan India Limited) beyond August 6, 2039, so as to enable MIL to license Nagpur Airport to GMR Nagpur International Airport Limited (GNIAL) for 30 years since commercial operation date (COD).

This marks a major milestone in Nagpur airport’s journey to becoming a regional aviation hub under the multi-modal international cargo hub and airport at Nagpur (Mihan) project.

In 2009, a joint venture company – MIL was formed by AAI and Maharashtra Airport Development Company (MADC) with equity structure of 49:51, respectively. Though airport assets of AAI were transferred to MIL in 2009 for airport operation, the lease deed got delayed due to land demarcation issues. Subsequently, AAI land was leased to MIL up to August 6, 2039.

In 2016, MIL floated a global tender for identifying a partner to operate the airport under the public-private partnership (PPP) model. GMR Airports Ltd. (GAL) emerged as the highest bidder, with quoted revenue share of 5.76 per cent.

This was later revised to 14.49 per cent of gross revenue. Subsequently, MIL annulled the bidding process in March, 2020. This annulment was successfully challenged by GAL before Bombay High Court.

Thereafter, the Supreme Court of India also ruled in favour of GAL. Pursuant to Supreme Court Judgement dated September 27, 2024, MIL signed concession agreement with second joint venture company, i.e., GMR Nagpur International Airport Ltd. (GNIAL) on October 8, 2024.

A new era for Nagpur airport

With the extension of the lease period of AAI land leased to MIL beyond 2039, it would now become co-terminus with the 30 years concession period of GNIAL, paving the way for its hand over.

This is expected to usher in a new era of growth and infrastructure advancement for Nagpur airport. With private sector efficiency and government oversight, the airport is poised to see significant investment, modernisation, and improved passenger and cargo services — the Government’s vision for robust infrastructure development in the aviation sector.

GNIAL will take up the transformation of Nagpur’s Dr. Babasaheb Ambedkar International Airport into a world-class facility with phased development envisaged to reach the ultimate capacity of handling 30 million passengers annually, positioning it as a key airport in central India.

This transformation is set to not only enhance connectivity within the Vidarbha region, but also strengthen its economic infrastructure. Cargo handling capabilities would also be significantly boosted.

Hub at the centre

Mihan is a flagship infrastructure project designed to leverage Nagpur’s unique position as the geographical center of India — the “zero mile.” Managed by the Maharashtra Airport Development Company (MADC), the project aims to transform the city into a global logistics and industrial powerhouse.

The project is broadly divided into two primary components: the modernisation of the international airport and the development of a massive special economic zone (SEZ).

The existing Dr. Babasaheb Ambedkar International Airport is being expanded into a world-class facility through a public-private partnership with GMR Nagpur International Airport Ltd (GNIAL).

Capacity: The phased development aims for an ultimate capacity of 30 million passengers and 870,000 tonne of cargo annually.

Infrastructure: Plans include a new 3 million sq. ft. terminal and a second parallel runway (4,000m x 60m) to facilitate simultaneous take-offs and landings.

Strategic advantage: Its location allows it to serve as a transit point for international flight paths connecting Europe, the Middle East, and Southeast Asia.

Abutting the airport is India’s largest multi-product SEZ, spanning over 2,000 hectares. It is designed as a self-sustaining ecosystem for export-oriented industries.

Key sectors: The zone hosts major clusters in IT / ITeS (TCS, Infosys, HCL), pharmaceuticals (Lupin), and aerospace.

MRO hub: A significant feature is the maintenance, repair, and overhaul (MRO) facility, including a major unit operated by Boeing, positioning Nagpur as an aviation engineering center.

Mihan integrates air, road, and rail transport seamlessly
Rail & road: A dedicated rail terminal managed by Concor and a road terminal for 1,000+ trucks ensure efficient last-mile logistics.

Social ecosystem: The project includes a “health city” (home to AIIMS Nagpur), educational institutions like IIM Nagpur, and integrated residential townships, making it a “city within a city.”

By combining state-of-the-art logistics with a robust industrial base, Mihan serves as a critical catalyst for the economic development of the Vidarbha region and a cornerstone of India’s national logistics policy.