The Maharashtra government, on 17 August 2006, approved the setting up of a separate company for the development of the proposed international passenger and cargo hub airport at Nagpur in Maharashtra.

The company will be a 51:49 joint venture between Maharashtra Airport Development Co. and Airports Authority of India . The airport will be handed over to the new company for a period of 30 years by charging a nominal rate of Re.1 per year and the centre will be in charge of airport security and air traffic control.

Rationale: The land on which the proposed international passenger and cargo hub (also known as MIHAN project) would be coming up is owned by AAI. There have been differences between AAI and MADC on the land issue, resulting in MADC finding it difficult to develop such a large project on land owned by some other agency (AAI). The Maharashtra government has been trying to have AAI transfer the land, but AAI has refused. Through this proposed joint venture, project implementation would be easier since AAI would still have control on the land and also on the project. It may be mentioned here that the MIHAN project involves development of the existing airport at Nagpur.

Also See:

PBA, Sadbhav Engg. win order from MADC (27-Mar-06)

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