New Delhi, May 13: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the extension of the Airports Authority of India (AAI) land lease to MIHAN India Limited (MIL) beyond August 6, 2039, enabling the structured modernisation of Dr. Babasaheb Ambedkar International Airport, Nagpur.
The decision aligns the land lease tenure with the 30-year concession agreement awarded to GMR Nagpur International Airport Limited (GNIAL), ensuring seamless implementation of the airport’s redevelopment under a Public-Private Partnership (PPP) model.
Transforming Nagpur into a major aviation hub
The project is designed to position Nagpur as a key passenger and cargo aviation hub under the broader MIHAN (Multi-modal International Cargo Hub and Airport at Nagpur) initiative.
It aims to strengthen central India’s connectivity and integrate passenger services with high-capacity cargo and logistics operations.
Major infrastructure upgrade planned
The redevelopment plan includes construction of a modern integrated terminal along with significant upgrades to airside infrastructure and operational facilities.
Upon completion, the airport is expected to handle up to 30 million passengers annually, significantly expanding its current capacity and operational efficiency.
The project will be implemented by a consortium led by the GMR Group.
Removing structural bottlenecks
The lease extension resolves long-standing land tenure and alignment issues between implementing agencies, which had slowed project execution in earlier phases.
With this regulatory clarity, the project is expected to advance into full-scale implementation without further administrative delays.
Economic and regional impact
The modernisation of Nagpur Airport is expected to deliver wide-ranging benefits, including:
- Enhanced regional and national air connectivity
- Expanded cargo and logistics capabilities
- Stronger industrial growth under the MIHAN ecosystem
- Increased investment attractiveness for central India
- New employment opportunities across construction and aviation services
Conclusion
The government stated that the decision reinforces its commitment to infrastructure-led growth, efficient public-private partnerships, and balanced regional development, while strengthening India’s aviation and logistics ecosystem for the long term.