New Delhi [India], May 13 (ANI): The Union Cabinet on Wednesday approved the Extension of Lease Period of the Airports Authority of India (AAI)'s land leased to MIL (MIHAN India Limited) beyond August 6, 2039, to enable MIL to license Nagpur Airport to the Concessionaire - GMR Nagpur International Airport Limited (GNIAL) - for 30 years since Commercial Operation Date (COD).

This marks a major milestone in Nagpur airport's journey to becoming a regional aviation hub under the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project, an official release said.

Information and Broadcasting Minister Ashwini Vaishnaw, who briefed the media on the decisions of the Union Cabinet, said that approval has been given to the upgradation and modernization of Nagpur International Airport under the PPP mode.

The meeting of Union Cabinet was chaired by Prime Minister Narendra Modi.

In 2009, a Joint Venture Company (JVC)- MIL was formed by AAI and Maharashtra Airport Development Company Ltd. (MADC) with equity structure of 49:51 respectively. Though Airport assets of AAI were transferred to MIL in 2009 for airport operation, the lease deed got delayed due to land demarcation issues. Subsequently, the AAI land has been leased to MIL up to August 2039.

The release said that in 2016, MIL floated a global tender for identifying a partner to operate the airport under the Public-Private Partnership (PPP) model.

GMR Airports Ltd. (GAL) emerged as the highest bidder, with a quoted revenue share of 5.76%. This was later revised to 14.49% of Gross Revenue.

Subsequently, MIL annulled the bidding process in March, 2020.

This annulment was successfully challenged by GAL before the Bombay High Court.

The Supreme Court of India also ruled in favour of GAL, the release said. Pursuant to the Supreme Court Judgement dated September 27, 2024, MIL signed a Concession Agreement with the second JVC, i.e. GMR Nagpur International Airport Ltd. (GNIAL) on October 8, 2024.

With the extension of the Lease Period of the AAI land leased to MIL beyond August 2039, it would now become co-terminus with the 30 years Concession Period of GNIAL, paving the way for the handing over of the airport to the second JVC-GNIAL.

This is expected to usher in a new era of growth and infrastructure advancement for Nagpur Airport.

With private sector efficiency and government oversight, the Airport is poised to see significant investment, modernization, and improved passenger and cargo services, the release said.

GNIAL will take up the transformation of Nagpur's Dr. Babasaheb Ambedkar International Airport into a world-class facility with phased development envisaged to reach the ultimate capacity of handling 30 million passengers annually, positioning it as a key Airport in Central India, the release said.

'This transformation is set to not only enhance connectivity within the Vidarbha region, but also strengthen its economic infrastructure,' it added.

Cargo handling capabilities would also be significantly boosted. (ANI)