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Delhi questions need to privatise profit-making Nagpur airport

INDIA's Ministry of Civil Aviation has asked Mihan India Ltd (MIL) for its justification in leasing Nagpur International Airport to a semi-private company as it would reduce government's income, reports New Delhi's Times of India

06 December 2019 - 19:00

INDIA's Ministry of Civil Aviation has asked Mihan India Ltd (MIL) for its justification in leasing Nagpur International Airport to a semi-private company as it would reduce government's income, reports New Delhi's Times of India.

MIL is a joint venture between the state government's Maharashtra Airport Development Company (MADC) and Airports Authority of India, central government body.



MIL is yet to send its reply to the query but it is understood that the agency will say that a private player will be needed to pump in required investment for developing planned airport infrastructure.



GMR Airports Ltd emerged as highest bidder for taking over Nagpur airport over a year ago. The private companies were supposed to bid on the basis of revenue share to be offered to MIL.



Initially GMR had offered to pay 5.73 per cent of the revenue generated from airport operations and was the highest bidder too. In March this year, the offer was increased to 14.49 per cent after which the MIL board approved the bid.



The final takeover will be subject to scrutiny by the project management implementation committee (PMIC) and Union cabinet. PMIC includes representatives of the union civil aviation ministry also.


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