Login/Register
GMR to Finally Land in Nagpur Airport After Long Court Battle
Kevin Rozario
October 2, 2024
Entrance to Nagpur Airport.
© Mihan India Limited
India’s Supreme Court has confirmed an earlier decision that allows airport operator, GMR, to move ahead with the upgrade and operation of Nagpur Airport (NAG) in the heart of the sub-continent.
The contract status at NAG (whose full name is Dr. Babasaheb Ambedkar International Airport) has been argued over in the courts for several years and it looks like a resolution is finally here.
On Tuesday (October 1), GMR Airports released a fairly lengthy statement to the stock exchange in relation to a Supreme Court order, issued a few days earlier, confirming the finality of Nagpur Airport concession rights in favor of itself.
In the letter, signed off by GMR Airports’ Company Secretary & Compliance Officer, Venkat Ramana, the company noted that the document was a continuation of correspondence that started in October 2018.
The Supreme Court of India issued its final order on September 27 in which it declined to exercise jurisdiction to interfere with its initial judgment on May 9, 2022. The court upheld the pre-existing decision which quashed the idea from Mihan India Limited (NAG’s present operator) to annul the bidding process.
In effect the judgment has directed Mihan—a joint venture between Maharashtra Airports Development Company (51%) and Airports Authority of India (49%)—to abide by the original concession agreement with GMR Airports signed about five years ago.
“Legal Hurdles Finally Concluded”
The court said there were no valid grounds to challenge the earlier ruling (on May 9, 2022). In its letter, GMR Airports commented: “With all the legal hurdles finally concluded, the authorities are required to execute the concession agreement at the earliest for the Nagpur Airport with GMR Airports.
NAG has a strategic position in India.
© Google Maps
The letter from GMR also outlined the timeline of the process. It noted: “GMR had emerged as the highest bidder in the tender process conducted by Mihan India Limited for the Nagpur Airport in 2019. The letter of award was issued to GMR in March 2019.
“However, the Government of Maharashtra decided to cancel the tender process in March 2020 and Mihan India Limited issued a letter annulling the bid process, which was set aside by the Honourable Nagpur Bench of the Bombay High Court in August 2021. The judgement was upheld by the Honourable Supreme Court by its order dated September 27, 2024.”
If this version of events is correct, there should be no further barriers to GMR Airport’s entry to NAG. The airport has a strategic position in India and is considered ripe for developing international aviation routes between Europe and south-east Asia and between South Africa and north-east Asia.
To do this, there are plans for the construction of a second runway, a new terminal building, and a cargo complex on a build-operate-transfer basis. In the 12 months to March 2024, NAG processed 2.9 million passengers, up by 9% year-over-year, according to AAI. IndiGo is the main carrier at the airport.