Cabinet clears way for GMR to run Nagpur airport under PPP by extending AAI land lease to MIHAN India Ltd
On 13 May 2026 the Union Cabinet extended the lease of AAI land to MIHAN India Ltd beyond 6 August 2039 so that Nagpur airport can be licensed to GMR Nagpur International Airport Ltd for 30 years under PPP.
Summary
The Union Cabinet on 13 May 2026 approved extending the lease of Airports Authority of India (AAI) land given to MIHAN India Limited (MIL) beyond 6 August 2039, so that MIL can license Nagpur airport to GMR Nagpur International Airport Limited (GNIAL) for 30 years from the commercial operation date. MIL is a 2009 joint venture of AAI and Maharashtra Airport Development Company (MADC) with a 49:51 equity split, and GMR emerged as the highest bidder in a 2016 PPP tender. After MIL annulled the bid in 2020, GMR won before the Bombay High Court and the Supreme Court, whose 27 September 2024 judgment led to a concession agreement on 8 October 2024. GNIAL plans to develop Dr. Babasaheb Ambedkar International Airport in phases to an ultimate capacity of 30 million passengers a year under the MIHAN project.
Key facts
- Decision
- 13 May 2026: AAI land lease to MIL extended beyond 6 Aug 2039
- Concessionaire
- GMR Nagpur International Airport Ltd (GNIAL), 30 years
- MIL
- 2009 JV of AAI and MADC, equity 49:51
- Legal history
- Bid annulled 2020; SC judgment 27 Sep 2024; concession signed 8 Oct 2024
- Target
- 30 million passengers a year; Dr. Babasaheb Ambedkar International Airport
Practice MCQs 3 questions
Under the Cabinet decision of May 2026, Nagpur airport is to be licensed for 30 years to which concessionaire?
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Correct answer: B — GMR Nagpur International Airport Ltd
The lease extension enables MIHAN India Ltd to license Nagpur airport to GMR Nagpur International Airport Ltd (GNIAL) for 30 years from COD.
Consider the following statements about MIHAN India Limited (MIL): 1. It was formed in 2009 as a joint venture of the Airports Authority of India and Maharashtra Airport Development Company. 2. The Airports Authority of India holds the majority (51%) equity in MIL. Which of the statements given above is/are correct?
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Correct answer: A — 1 only
Only 1 is correct. The AAI–MADC equity structure is 49:51, so MADC, not AAI, holds the majority.
Nagpur's Dr. Babasaheb Ambedkar International Airport is planned to be developed to an ultimate capacity of how many passengers a year?
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Correct answer: D — 30 million
GNIAL's phased development envisages an ultimate capacity of 30 million passengers annually.