New Delhi / Nagpur: In a major boost to aviation infrastructure in Central India, the Union Cabinet chaired by Prime Minister Narendra Modi has approved the upgradation and modernisation of Nagpur International Airport through a long-term Public-Private Partnership (PPP) model.
The approval includes the extension of the lease period of Airports Authority of India (AAI) land leased to MIHAN India Limited (MIL) beyond August 6, 2039. This will enable MIL to hand over the airport operations to concessionaire GMR Nagpur International Airport Limited (GNIAL) for a period of 30 years from the Commercial Operation Date (COD).
The decision is being seen as a significant step towards transforming Nagpur into a major regional aviation and cargo hub under the ambitious Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project.
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May 13- 2026 - Time 10.30Hrs
Background of the MIHAN Airport Project
According to the Press Information Bureau release issued on May 13, 2026, MIHAN India Limited was formed in 2009 as a Joint Venture Company between Airports Authority of India (AAI) and Maharashtra Airport Development Company Ltd. (MADC). The equity structure of the company was fixed at 49:51 respectively.
Although airport assets belonging to AAI were transferred to MIL in 2009 for airport operations, the lease deed process faced delays due to land demarcation issues. Subsequently, AAI land was leased to MIL only up to August 6, 2039.
Global Tender and Legal Battle
In 2016, MIL floated a global tender to identify a private partner for operating Nagpur Airport under the PPP model. GMR Airports Ltd. emerged as the highest bidder with an initial quoted revenue share of 5.76%, which was later revised to 14.49% of gross revenue.
However, in March 2020, MIL annulled the bidding process. The decision was challenged by GMR Airports Ltd. before the Bombay High Court, where the company secured relief. Later, the Supreme Court of India also ruled in favour of GMR Airports Ltd., paving the way for the revival of the airport privatization process.
Big Push for Nagpur’s Aviation Future
The Cabinet’s latest approval is expected to unlock long-pending investments and infrastructure upgrades at Nagpur International Airport. Aviation experts believe the move could significantly improve passenger handling capacity, cargo operations, connectivity, and commercial development around the airport region.
The development also strengthens Nagpur’s strategic position in India’s aviation map due to its central geographic location and the larger MIHAN logistics ecosystem.
Officials say the modernisation project is expected to generate employment opportunities, attract new investments, and accelerate economic growth in Vidarbha and surrounding regions.
