The government on Wednesday approved the creation of a joint venture firm, comprising Airports Authority of India and Maharashtra government, to construct a multi-modal passenger and cargo hub at the Nagpur airport, keeping its geographical location in mind.
The decision, taken by the Union Cabinet, would enable the government to transfer the land owned by the AAI so far to the firm that is a JV between the state-owned airports body and public sector Maharashtra Airport Development Company (MADC) for creation of this hub.
"Approval has been granted to the establishment of the first joint venture (AAI-MADC) and transfer of the land and assets to it," Home Minister P Chidambaram told reporters here. In this JV, AAI would hold 49 per cent and MADC 51 per cent.
The first JV firm would then invite and select a private partner and form a second JV, in which the former would hold 24 per cent equity and the latter 76 per cent, he said, adding that a concession agreement would then be signed between the parties in the second JV.
"The airport will be developed in the public-private partnership (PPP) mode," Chidambaram said.