MIHAN and Special Economic Zone (SEZ) project has proven to be a big disappointment for more than two decades
Nagpur: What was touted as the biggest economic turnaround story for backward Vidarbha region, the ambitious Multimodal International Hub and Airport at Nagpur (MIHAN) and Special Economic Zone (SEZ) project has proven to be a big disappointment for more than two decades. The MIHAN project started with investments worth crores has not gathered the momentum as was being told.
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Tuesday 12 Nov. 2024
Touted as a dream Cargo Hub project, MIHAN has hogged publicity as Defence Aviation Hub, Pharma Hub, Education Hub, IT Hub since the past many years. However, fulfilling of this dream has been a big failure. Some big companies in MIHAN like Infosys, Tech Mahindra, HCL, TCS have provided job opportunities. The MROs of Air India and Indmar are operating successfully. Dassault-Reliance Aerospace Ltd are manufacturing vital parts for Rafale jets and Falcon aircraft.
Patanjali project a damp squib:
However, the much awaited Patanjali Mega Food Park of Yoga Guru Baba Ramdev has proved a damp squib. The project has not started as yet. The projects of Kalpana Saroj Global Aviation MRO and Training Centre, state-of-the-art hospital, residential and commercial complex, and other projects are in the pipeline. The MIHAN project would get steam in real term if these projects start functioning.
However, according to a report, what has come to the fore is the fact that more than 40 per cent of the land for the SEZ and non-SEZ components of MIHAN project is still ‘balance’. SEZ component has total 1,236 hectares of land pool of which 290 is ‘non-disposable’, that is, land required for roads, drainage line, forest land, canal, landscaping etc. The SEZ component had 945 hectares of ‘disposable’ land, that is, available for investors. However, sadly, only 560 hectares of land has been ‘disposed of’ (sold to investors, in other words). And, 384 hectares — that is, over 40 per cent of total area — is still ‘balance’.
Similarly, in case of non-SEZ component, of total land pool of 1,013 hectares, 328 hectares is ‘non-disposable’. Of 684 hectares of ‘disposable’ land pool, only 394 hectares has been ‘disposed of’, and 289 hectares — again, more than 40 per cent of total area — is still ‘balance’ with the authorities. In several cases, as has been highlighted by local media, the investors to whom the land has been made available have not yet started their units.
Power needed at lower rate:
The Maharashtra Airport Development Company (MADC) has hiked the power tariff of the industries in MIHAN. As the a result, industries have been hit hard. Currently, power is being provided at Rs 4.3 per unit and the rate is going to hiked continuously from the next year. In future the power rate could go at Rs 6.50, Rs 7.50, Rs 8.50 and more. The power rate for the industries that are functioning currently is not feasible. There is possibility that many projects could go non-operational due to high power tariff.
The list of projects that have still not started despite procuring land in SEZ and Non-SEZ:
•Duraloy India
•Gati Limted
•Monginis Food Pvt Ltd
•Fototonics
•Rights
•Sislogics Technologies Pvt Ltd
•ADCC Infocom Pvt Ltd
•Asara Reality Ventures Pvt Ltd
•Beckurel Industries Pvt Ltd
•Blue Planet Infosolutions Pvt Ltd
•Building Research and Management Pvt Ltd
•Infoworld Infrastructure Pvt Ltd
•Gum Pharma Pvt Ltd
•Gurudeo Dutt Technologies
•Haldiram’s Foods International Pvt Ltd
•Haripack Pvt Ltd
•Hexaware Technologies Pvt Ltd
•Informatic Solution
•Krushna Infotech
•Kunjan Plastics
•Lilay Ventures Pvt Ltd
•Lipi International Pvt Ltd
•Lokmangal Infotech
•Manmohan International Contracting
•Marksons Pharma
•Master Soft ERP Solutions Pvt Ltd
•Murodia Consultancy Services Pvt Ltd
•Millenium Drovel Pvt Ltd
•Paramount Conductors Ltd
•Praful Food Links Pvt Ltd
•R & D Tech Pvt Ltd
•Rajtaru Infotech Entertainment Pvt Ltd
•RJN Software Solutions Pvt Ltd
•Sony Polymers Pvt Ltd
•Sumit Trading Company
•Taj Satts Air Catering Ltd
•Thermolab Scientific Equipment Pvt Ltd
•Vipul Karamchand Pvt Ltd
•Yelmanchili Software Exports Pvt Ltd
•Zeon Solutions Pvt Ltd
•Zeeta Softtech Pvt Ltd
•Zim Laboratories Pvt Ltd
As such, even the ‘disposed of’ part does not present the true picture of the so-called progress made by MIHAN project in more than two decades. When ‘The Hitavada’ sought to know the details regarding land pool and balance area, Maharashtra Airport Development Company (MADC) officials refused to provide those officially citing various reasons. Officials passed the buck to other colleagues whe details sought. One official even asked, “Such reports might adversely affect the prospects of investment that may come to MIHAN project.” However, he had no answer when ‘The Hitavada’ asked, “If highlighting status of the project after over two decades might adversely affect the prospects of investment, what about the abject failure of the project in achieving desired outcome in these years?”
For the record, MADC was constituted in the year 2002 by Government of Maharashtra as a special purpose vehicle to develop MIHAN, and aviation infrastructure in the State to provide regional air connectivity. MADC had equity participation from City and Industrial Development Corporation of Maharashtra Ltd, Nagpur Improvement Trust, Maharashtra Industrial Development Corporation, State Industrial & Investment Corporation of Maharashtra Ltd, Nagpur Municipal Corporation, Maharashtra State Road Development Corporation Ltd, as per the information on MADC website. While the land is still ‘balance’ with the authorities, land acquisition issues also are yet to be sorted out fully. According to sources, close to 300 of total around 1,000 project-affected persons (PAPs) from Shivangaon village have shifted to relocation site and others are ‘in the process of shifting’. The PAPs from Dahegaon, Telhara, Kalkuhi have settled in new gaothan. So far, compensation of Rs 486 crore has been paid to the PAPs from whom land was acquired. An amount of Rs 248 crore has been paid as ‘enhanced compensation’ following litigations. And, an amount of Rs 140 crore has been provided for housing construction and as ex-gratia. Given these facts, it becomes clear that either there has been failure of the authorities concerned in all these years in aggressively marketing MIHAN and providing necessary facilities, or there has been utter disinterest of the political powers-that-be, or there has been lack of conviction in turning tall claims into reality. Whatever the case may be, MIHAN has proven to be a tale of disappointment for those who really believed that it would change the economy of the region and provide five lakh jobs as promised.
IT CANNOT be just a coincidence that the words “Dream, Development, Delay, and Disappointment” start with the letter ‘D’. Take the case of the ambitious Multimodal International Hub and Airport at Nagpur (MIHAN) and Special Economic Zone (SEZ) project.
