Land Lease Extension Paves Way for GMR Takeover of Nagpur Airport

The long-awaited takeover of Dr. Babasaheb Ambedkar International Airport in Nagpur by GMR Group is set to proceed after the Airports Authority of India (AAI) and MIHAN India Ltd (MIL) extended the lease period of airport land beyond August 2039. The move removes a key hurdle that had delayed the public-private partnership project and enables GMR Nagpur International Airport Ltd (GNIAL) to operate and modernise the airport under a 30-year concession agreement. The transition is expected to be completed on June 25, marking a significant milestone in the airport’s development.

The lease extension aligns the tenure of the land agreement with the concession period awarded to GNIAL, creating the legal framework necessary for the transfer of operations. The project follows years of legal and administrative challenges, including litigation over the airport’s privatisation process. GMR, which emerged as the successful bidder for the project, is expected to begin infrastructure upgrades immediately after assuming control.

Under GMR’s plans, Nagpur Airport will undergo a phased expansion programme aimed at significantly increasing passenger-handling capacity and strengthening its role as a major aviation and logistics hub in central India. Proposed developments include modernisation of the existing terminal, construction of a new passenger terminal, airside infrastructure improvements and, in the longer term, development of a second runway. Industry stakeholders believe the project will boost connectivity, attract investment and support the growth of the MIHAN economic zone and the wider Vidarbha region.