GMR Group will develop and operate Dr Babasaheb Ambedkar International Airport in partnership with MIHAN India Limited under the MIHAN initiative in Nagpur, Maharashtra, India.

The Union Cabinet removed the last major administrative obstacle for the GMR Group to assume operations of the brownfield airport under a public-private partnership model. The move provides long-awaited clarity to a project considered a major growth driver for the region, with GMR expected to invest nearly ₹7,000 crore (US$725 million) in airport development. The Cabinet also approved the extension of the Airports Authority of India land lease to MIHAN India Limited, allowing the joint venture to award a 30-year concession agreement to GMR Nagpur International Airport Limited from the date of commercial operations.

The approval is likely to breathe new life into the three-decade-old vision of MIHAN, which was planned as an integrated aviation and logistics hub aimed at positioning Nagpur as a key passenger and cargo gateway. GMR Group will modernize the existing airport while also developing a new international-standard terminal, adding a second runway, and introducing infrastructure comparable to leading airports. The additional runway is expected to boost Nagpur’s aspirations of emerging as a logistics hub, especially since the city currently handles only two international flights despite having international airport status.

The Cabinet’s decision brings an end to a long-standing dispute that started after GMR Airports Limited emerged as the highest bidder in the airport privatisation process launched by MIHAN India Limited in 2016. The origins of the project date back to 2009, when MIHAN India Limited was established as a joint venture between the Airports Authority of India and the Maharashtra Airport Development Company with a 49:51 equity partnership. Although airport assets were handed over to the joint venture that year, execution of the land lease agreement was delayed due to issues related to land demarcation.

The proposed expansion is set to become one of the biggest aviation infrastructure developments in central India, integrating passenger traffic growth with logistics, cargo, and industrial expansion. The modernisation project, which will introduce advanced facilities for international passenger and cargo operations, is expected to strengthen Nagpur’s position as a strategic logistics centre while improving both domestic and global connectivity. The move also marks a significant milestone in the city’s infrastructure growth plans and is likely to attract further investment and development across the region.