Maharashtra Airport Development Company, lead developer of the $10 billion Multi Modal International Hub Airport at Nagpur (MIHAN) has decided to de-notify some land reserved for the special economic zone and use it for real estate development.
The project near Nagpur city is spread over 4,354 hectares, it comprise of 2,086 hectares of SEZ.
Many potential investor companies have withheld their plans to set up units in the SEZ.
Unlocking a portion of SEZ land is a part of new marketing strategy aimed at reviving the project. Due to the global economic downturn of 2008, the project has seen sharp decline in investments.
The project was conceived in late 1990s with an idea to create a mega SEZ with international airport in the vicinity. Goods would be manufactured at the SEZ and shipped-out using the airport. Existing airport at Nagpur will be converted into an international passenger and cargo hub airport.
The airport will also serve as a major transit point for cargo aircrafts from Europe to South-East Asia, South Asia and South Pacific, Africa to North-East Asia and the CIS to South East Asia.
Cargo planes will be able to carry more cargo as they would be able to refuel at Nagpur.
Since the inception of the project in 2004, the Maharashtra Airport Development Company (MADC) has been able to lease out only 478 hectares to about 50 companies in the SEZ.
Senior officials told Business Line that efforts are on to revive the project.
Major infrastructure such as roads, communication, bridges and central facility building has been setup.
A coal-based captive power plant has been operationalise, power would be soon supplied to the units in the SEZ area.
The ground breaking ceremony for the long delayed maintenance repair and overhaul (MRO) facility will take place in May.
The facility is being set up by a joint venture between Boeing and Air India, officials said.
Health care
“Among other companies, we are also trying to attract those in pharmaceuticals and health care space.
“Lupin Ltd is already in talks with us for setting up a bulk drug facility, which will be certified by US Food and Drug Administration, while Leela Ventures India Ltd is looking at setting up a super speciality hospital for medical tourist,” officials said.