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Nagpur Airport Modernisation Gets Cabinet Nod for Global Hub

The Union Cabinet has approved the extension of the lease period for AAI land at Nagpur Airport to enable GMR Nagpur International Airport Limited to operate it for 30 years. This decision marks a major step in the airport's transformation into a regional aviation hub under the MIHAN project. The modernisation is expected to boost connectivity in the Vidarbha region and strengthen economic infrastructure. The airport aims to achieve a capacity of handling 30 million passengers annually.

Key Points: Cabinet Approves Nagpur Airport Modernisation Under PPP

  • Cabinet approves lease extension for Nagpur airport
  • GMR Nagpur International Airport to operate for 30 years
  • Airport to handle 30 million passengers annually
  • Part of MIHAN project to create regional aviation hub
3 min read

Cabinet approves Nagpur International Airport modernisation under PPP model

Union Cabinet approves extension of lease for Nagpur International Airport modernisation under PPP, paving way for GMR to operate for 30 years.

"This transformation is set to not only enhance connectivity within the Vidarbha region, but also strengthen its economic infrastructure. - Official release"

New Delhi, May 13

The Union Cabinet on Wednesday approved the Extension of Lease Period of the Airports Authority of India's land leased to MIL beyond August 6, 2039, to enable MIL to license Nagpur Airport to the Concessionaire - GMR Nagpur International Airport Limited - for 30 years since Commercial Operation Date.

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, an official release said.

Information and Broadcasting Minister Ashwini Vaishnaw, who briefed the media on the decisions of the Union Cabinet, said that approval has been given to the upgradation and modernization of Nagpur International Airport under the PPP mode.

The meeting of Union Cabinet was chaired by Prime Minister Narendra Modi.

In 2009, a Joint Venture Company (JVC)- MIL was formed by AAI and Maharashtra Airport Development Company Ltd. (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, the AAI land has been leased to MIL up to August 2039.

The release said that 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 a quoted revenue share of 5.76%. This was later revised to 14.49% of Gross Revenue.

Subsequently, MIL annulled the bidding process in March, 2020.

This annulment was successfully challenged by GAL before the Bombay High Court.

The Supreme Court of India also ruled in favour of GAL, the release said. Pursuant to the Supreme Court Judgement dated September 27, 2024, MIL signed a Concession Agreement with the second JVC, i.e. GMR Nagpur International Airport Ltd. (GNIAL) on October 8, 2024.

With the extension of the Lease Period of the AAI land leased to MIL beyond August 2039, it would now become co-terminus with the 30 years Concession Period of GNIAL, paving the way for the handing over of the airport to the second JVC-GNIAL.

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, modernization, and improved passenger and cargo services, the release said.

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, the release said.

"This transformation is set to not only enhance connectivity within the Vidarbha region, but also strengthen its economic infrastructure," it added.

Cargo handling capabilities would also be significantly boosted.

- ANI

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Reader Comments

P
Priya S
Finally some infra push for central India! But why did it take so many court cases and a Supreme Court ruling to get this done? Government processes are painfully slow. Hope the modernisation includes better road connectivity to the airport too, not just the terminal šŸ™
A
Arjun K
Good move by the Cabinet but I hope this doesn't mean higher ticket prices for passengers from smaller cities. PPP model works when there's proper regulatory oversight. The 14.49% revenue share to government seems decent - let's see if they actually use that money for regional development.
J
James A
Impressive scale - 30 million passengers per year! That's almost as big as some European capitals. Nagpur is strategically located right in the centre of India - this could really become a major hub for both domestic and international routes. About time the government invested in non-metro airports!
S
Sneha F
While I welcome the modernisation, I hope the government ensures fair compensation for land acquisition if needed. Farmers in Vidarbha have already suffered enough. Also, they should focus on making the cargo hub truly multi-modal - rail and road connectivity must be part of the same plan, not an afterthought.
D
Deepak U
Another PPP airport model being pushed. Let's hope they don't repeat the mistakes of Delhi and Mumbai airports where vendors charge exorbitant prices for basic food and water. Airport modernisation should mean better passenger experience, not just fancy terminals and high duty-free shops.

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