New Delhi, May 13: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the extension of the lease period for land leased to Mihan India Limited (MIL) by the Airports Authority of India (AAI) until August 6, 2039. This decision paves the way for the transfer and long-term development of Dr. Babasaheb Ambedkar International Airport under a public-private partnership (PPP) model.
The Cabinet’s statement indicated that following this decision, MIL will be able to grant a license for Nagpur Airport to GMR Nagpur International Airport Limited (GNIAL) for a period of 30 years from the commercial operations date (COD). This marks a significant achievement towards establishing Nagpur Airport as a regional aviation hub under the Multi-Modal International Cargo Hub and Airport (Mihan) project.
In 2009, AAI and Maharashtra Airport Development Company Limited (MADC) formed a joint venture company (JVC) called MIL with a 49:51 equity ratio. Although AAI’s airport assets were transferred to MIL for airport operations in 2009, delays in the lease deed arose due to land demarcation issues. Subsequently, AAI’s land has been leased to MIL until August 6, 2039.
In 2016, MIL issued a global tender to identify a partner for airport operations under the PPP model. GMR Airports Limited (GAL) emerged as the highest bidder with a revenue share of 5.76 percent, which was later revised to 14.49 percent.
However, MIL canceled the bidding process in March 2020, leading GAL to challenge this cancellation in the Bombay High Court. The Supreme Court later ruled in favor of GAL. According to the Supreme Court’s decision on September 27, 2024, MIL signed a concession agreement with the other joint venture, GMR Nagpur International Airport Limited (GNIAL), on October 8, 2024.
The government stated that under phased development, the airport’s final capacity will handle 30 million passengers annually, making it one of the major airports in Central India. This transformation will not only enhance connectivity in the Vidarbha region but also strengthen its economic infrastructure, significantly increasing cargo handling capacity.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
Leave a Comment