The Nagpur Dr.Babsaheb Ambedkar International Airport is set for a major infrastructure upgrade after the Union Cabinet approved a long-term public-private partnership (PPP) framework that will make way for the expansion of passenger terminals, runway infrastructure, and cargo handling facilities.

According to the PIB release, the Cabinet sanctioned the extension of the lease period of land owned by the Airports Authority of India (AAI) and leased to MIHAN India Limited (MIL) beyond August 6, 2039. This move will enable MIL to hand over the airports to GMR Nagpur International Airport Limited (GNIAL) for 30 years concession period from the commercial operation date.

The government stated that the project forms part of the larger Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) initiative aimed at developing Nagpur into a major aviation and logistics hub in central India.

PM Modi hails urbanisation of Nagpur Airport 

Reacting to the Cabinet decision, Prime Minister Narendra Modi stated that the airport project would provide “a major boost for Nagpur’s infrastructure.” In a post on X, PM Modi said that the decision relating to Nagpur Airport would “accelerate its emergence as a crucial aviation and cargo hub” and help strengthen connectivity, boost commerce, and create new growth opportunities in the region.

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The Union Information and Broadcasting Minister Ashwini Vaishnaw announced the Cabinet approval after the meeting headed by Prime Minister Narendra Modi.

What changes are planned at Nagpur Airport?

As per details shared in the PIB release and presentation shown during the Cabinet briefing, the airport will undergo phased expansion and modernisation to transform it into a “world-class aviation facility”.

The proposed upgrade includes expansion of terminal infrastructure, development of Code-E compliant runway infrastructure and improvements in integrated passenger terminal facilities.

The project also aims to significantly increase cargo handling infrastructure under the MIHAN project.

According to the PIB statement, the airport is planned to eventually handle up to 30 million passengers annually, which would make it one of the major aviation hubs in central India.

The government said the expansion is expected to improve connectivity in the Vidarbha region while also supporting trade, logistics and economic activity.

What facilities could passengers see after the upgrade?

While the government has not yet released a detailed terminal blueprint, officials indicated that the airport modernisation will focus on improving passenger experience, operational efficiency and aviation infrastructure.

The expansion is expected to bring larger integrated terminal facilities, upgraded runway systems, better passenger processing infrastructure and improved cargo movement capacity.

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The PPP model is also expected to bring private-sector-led investment into airport operations and infrastructure development.

Reacting to the development, Maharashtra Chief Minister Devendra Fadnavis said in a post on X that “all obstacles” for development of Nagpur airport as a brownfield airport had now been cleared.

“The wait for people of Nagpur and Vidarbha is over to get access to world class airport facilities,” Fadnavis said while thanking Prime Minister Modi for the Cabinet approval.

Why did the project face delays?

The airport modernisation project has faced several hurdles over the years. In 2009, AAI and Maharashtra Airport Development Ltd (MADC) established a joint venture company, MIHAN India Limited with a 49:51 equity structure.

The airport assets were transferred to MIL in 2009, execution of the lease deed was delayed due to land demarcation-related issues.

In 2026, MIL floated a global tender to identify a private operator under the PPP model, and GMR Airports came up as the highest bidder.

The government mentioned that the GMR had initially quoted a revenue share of 5.76 percent which was later revised to 14.49 percent of gross revenue.

Later, the bidding process was cancelled in March 2020. As per the PIB release, GMR challenged the decision before the Bombay High Court and later the Supreme Court both of which ruled in the company’s favour.

Following the Supreme Court’s September 27, 2024 ruling, MIL signed the concession agreement with GNIAL on October 8, 2024