New Delhi, May 13 (SocialNews.XYZ) The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the extension of the lease period of land owned by the Airports Authority of India (AAI) and leased to MIHAN India Limited (MIL), paving the way for the transfer and long-term development of Dr. Babasaheb Ambedkar International Airport under the public-private partnership model.
The decision will enable MIL to license the Nagpur airport to GMR Nagpur International Airport Limited (GNIAL) for 30 years from the Commercial Operation Date (COD), marking a significant milestone in the development of the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project.
According to the government, the extension of the lease period beyond August 6, 2039, will make it co-terminus with the 30-year concession period granted to GNIAL.
The move is expected to facilitate the smooth handover of the airport to GNIAL and accelerate infrastructure development and modernisation at the airport.
MIL was formed in 2009 as a joint venture between AAI and Maharashtra Airport Development Company (MADC) with a 49:51 equity structure.
Although airport assets were transferred to MIL in 2009 for operational purposes, the execution of the lease deed was delayed due to land demarcation issues, after which the land was leased only up to August 6, 2039.
In 2016, MIL floated a global tender to identify a private partner to operate the airport under the PPP model.
GMR Airports emerged as the highest bidder with a quoted revenue share of 5.76 per cent, which was later revised to 14.49 per cent of gross revenue.
However, MIL annulled the bidding process in March 2020, triggering legal proceedings.
The annulment was challenged by GMR Airports before the Bombay High Court, which ruled in favour of the company.
The matter later reached the Supreme Court, which also upheld GMR’s position in its judgment delivered on September 27, 2024.
Following the apex court’s verdict, MIL signed the concession agreement with GNIAL on October 8, 2024.
The government said the latest Cabinet approval would usher in a new phase of growth for Nagpur airport by combining private sector efficiency with government oversight.
GNIAL is expected to transform the airport into a world-class aviation hub with phased infrastructure expansion plans aimed at increasing passenger handling capacity to 30 million annually.
Source: IANS
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