Nagpur: At least 20 months after Prime Minister Narendra Modi held the groundbreaking ceremony for expansion and modernisation of Nagpur airport, the Union Cabinet chaired by him cleared the final administrative hurdle on Wednesday to allow the GMR Group to take over operations of the brownfield airport in a public-private partnership model. The decision brings much-needed clarity to a project set to be a gamechanger for the region with GMR expected to pump in Rs 7,000 crore for the airport’s development.The Cabinet approved extension of Airports Authority of India’s (AAI) land lease to MIHAN India Limited beyond Aug 6, 2039, enabling the joint venture company to grant a 30-year concession to GMR Nagpur International Airport Limited (GNAIL) from the commercial operation date. The move effectively ends a prolonged legal and policy battle that stalled one of central India’s most ambitious infrastructure projects for more than six years.The approval is expected to revive the 30-year-old vision of the Multi-Modal International Cargo Hub and Airport at Nagpur, or MIHAN, which was conceived as an integrated aviation and logistics centre to transform Nagpur into a strategic passenger and cargo gateway.An elated Maharashtra chief minister Devendra Fadnavis welcomed the Union cabinet decision, describing it as a turning point for the city’s infrastructure ambitions. “Only a few clearances were pending for the airport transfer. I thank Prime Minister Narendra Modi and the Union Cabinet for approving the project today. We will build a world-class airport in Nagpur,” he told reporters.Nagpur airport director Abid Ruhi said the Centre’s approval would significantly accelerate the city’s long-term economic development. “GMR will not only renovate the existing airport but also build a new international-standard terminal. It will construct a second runway and provide facilities comparable to top airports. The second runway will strengthen Nagpur’s ambition of becoming a logistics capital,” he said. Nagpur currently operates only two international flights despite its designation as an international airport.The Cabinet decision closes a contentious chapter that began after GMR Airports Limited emerged as the highest bidder in the airport privatisation process initiated by MIHAN India Limited in 2016. The company initially quoted a revenue-sharing offer of 5.76%, later revised to 14.49% of gross revenue after negotiations.However, the bidding process was annulled in March 2020 during the tenure of the Maha Vikas Aghadi govt led by then CM Uddhav Thackeray, triggering a prolonged legal dispute. The multinational conglomerate challenged it in Nagpur bench of Bombay High Court, terming it as “unjust, arbitrary and illegal action”, which later ruled in the company’s favour. The verdict was subsequently upheld by Supreme Court, including in proceedings related to a review petition. The legal battle continued till September 2024 as the state government which was then headed by Devendra Fadnavis pursued the matter till the apex court, but lost.The roots of the project go back to 2009, when MIHAN India Limited was formed as a joint venture between the Airports Authority of India and the Maharashtra Airport Development Company with a 49:51 equity structure. While airport assets were transferred to the joint venture the same year, land lease formalities were delayed because of demarcation-related issues.Govt officials said the latest approval aligns the land lease tenure with the full concession period, enabling the formal handover and implementation of the airport modernisation plan.The expansion is expected to become one of the largest aviation infrastructure upgrades in central India, combining passenger traffic growth with logistics, cargo and industrial development. The Centre said the project reflects its broader infrastructure-led growth strategy and increased private participation in the aviation sector.The modernisation plan, which includes state-of-the-art facilities for international cargo and passenger services, promises to place Nagpur firmly on the map as a strategic logistics hub, enhancing both domestic and international connectivity. The decision also represents a major step forward in the city’s infrastructure ambitions and could set the stage for future investment and development in the region, as per the MADC officials.#Key Takeaways:Union Cabinet approved extension of AAI land lease for Nagpur airport projectDecision enables 30-year concession to GMR Nagpur International Airport LimitedMove ends over six years of legal and administrative uncertaintyGMR to modernise airport under public-private partnership modelExpansion includes new terminal building and second runwayAirport capacity projected to rise from 3 million to 30 million passengers annuallyCargo handling infrastructure to be significantly expanded under MIHAN visionSupreme Court upheld GMR’s rights after prolonged litigationCM Devendra Fadnavis called the project a major step for Nagpur’s growthOfficials expect improved connectivity, logistics expansion and increased airline operations
