Nagpur: Two decades after its launch, MIHAN-SEZ, once envisioned as a catalyst for economic growth, is now grappling with neglect, red tape, and bureaucratic inefficiency. Instead of fulfilling its promise as a thriving industrial hub, the ambitious project is steadily losing its appeal, with major companies either exiting or considering relocation in search of better prospects.
The latest blow comes from DNJ Company, a prominent player in the jewellery industry, which has applied to transfer its Letter of Approval (LOA) to another location. The company, which set up operations in MIHAN’s Central Facility Building five years ago, is now keen to move out due to the lack of critical infrastructure and support.
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Friday 28 March 2025
Industry insiders cite several key reasons behind the growing discontent among businesses at MIHAN-SEZ. One of the major hurdles faced by DNJ and other companies is the absence of a Strong Room for secure storage of high-value goods — an essential facility for a jewellery manufacturing unit. Sources reveal that DNJ has managed only a single transaction from MIHAN, preferring instead to conduct operations from Mumbai due to security concerns.
Another significant challenge is the lack of a developer custodian willing to support businesses in MIHAN, making operations increasingly difficult. Furthermore, recent tariff hikes by the United States have also played a role in DNJ’s decision to relocate, as rising costs and operational challenges have made MIHAN an unsustainable choice.
The bureaucratic sluggishness in clearing new proposals has further dampened industrial enthusiasm. Despite efforts to establish a Jewellery Cluster in MIHAN, the proposal has been stuck in limbo. The All India Gems & Jewellery Domestic Council (GJC) has already registered the ‘Orange City Jewellery Cluster’, aimed at fostering designer gold jewellery manufacturing, training centres, and research laboratories. However, despite initially applying for land, the project has been stalled due to excessive delays and unnecessary re-tendering, affecting Nagpur’s industrial growth prospects.
A bleak future for MIHAN?
Over the years, the deterioration of MIHAN’s infrastructure has reached alarming levels. Despite repeated pleas from companies for facility upgrades, officials remain indifferent, exacerbating the crisis. Reports suggest that concerned officials are barely present in Nagpur, forcing businesses to rely on Mumbai-based decision-makers, leading to file processing delays of up to two years. The lack of local oversight has led to frustration among stakeholders, with many companies now actively exploring alternative locations for relocation.
Key highlights of the struggles at MIHAN-SEZ:
• Lack of basic infrastructure: Crumbling facilities and absence of essential amenities like a Strong Room for jewellery manufacturers.
• Bureaucratic red tape: Files languish in Mumbai for years, delaying key decisions.
• Reluctant investors: Businesses are hesitant due to inefficiencies and lack of official engagement.
• Jewellery Cluster project in jeopardy: The proposed ‘Orange City Jewellery Cluster’ remains stalled, despite its potential to make Nagpur a major jewellery manufacturing hub.
• Growing exodus of companies: Several firms have already exited MIHAN, with more planning to follow suit.
The continued mismanagement of MIHAN-SEZ is a grim reminder of how administrative apathy can cripple ambitious projects. If urgent action is not taken to streamline operations, enhance infrastructure, and resolve bureaucratic hurdles, MIHAN risks losing its relevance altogether. The proposal to hand over management to a local gazetted officer must be closely monitored to ensure efficient governance and revive MIHAN’s prospects before it turns into a complete economic disaster.
