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Mihan India cancels contract awarded to GMR Airports for Nagpur airport development

Friday, 22 May 2020
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Mihan India has cancelled the contract for the development of Nagpur Airport awarded to GMR Airports (GAL), a subsidiary of GMR Infrastructure. 
In October 2018, GMR had emerged as the highest bidder for the development, operations and management of Dr Babasaheb Ambedkar International Airport, Nagpur, in public private partnership (PPP) mode.
GMR was awarded the mandate by Mihan in March 2019. Mihan is a joint venture between Maharashtra Airport Development Company and the Airports Authority of India (AAI). 
It had started request for proposal (RfP) process to privatise the Nagpur Airport in March 2018. The contract included the construction of a new terminal amongst other works.
GMR had offered a higher revenue share and won the bid. However, some glitches with regard to the revenue share seem to have impacted the contract. The contract was cancelled by the Maharashtra government. The matter is likely to be contested and possibly renegotiated.


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