Even as the Nagpur airport finally goes to the Mihan India Private Limited (MIPL), the MADC-AAI joint venture for building Mihan, the
current economic situation has pushed back this ambitious project by at least five years. "As against the target of setting up the multimodal international hub in Nagpur (Mihan), in a full-fledged manner by 2035, it would now go to 2040," MIPL's chairman R C Sinha told TOI.
It was envisaged that by 2035, Mihan should have been able to have a parking capacity of 95 aircraft, handle 8 lakh tonnes cargo, and 14 million passengers each year. The current estimates show air traffic down by 8%, which would have its impact on Mihan. “However, if the economy revives there are chances that the project could be completed earlier,” he added.
MIPL would now begin scouting for strategic third partner to pool in funds along with AAI and Maharashtra government for developing the air cargo hub. However, it would be done over a period of time, as a consultant would be first appointed to conduct an appraisal. The partner would be finalised on the basis of the consultant's findings. The whole process is expected to take at least 6-7 months or even more. It also depends on the willingness of the third party.
In short-term, MIPL will focus on improving services at the present airport. It would also look at players like Deccan 360 starting their own logistics hub. "The road and rail hub is expected to start in four years or so. The capacity of these hubs can be expanded according to demand, all we would need to do is set up more warehouses," said Sinha. The rail and road hub spread over 83 acres is being developed by M/s Nagpur Sical-Gupta Logistics.
Sinha said that in coming years MIPL would be spending Rs 200 crore on the airport. It includes setting up of the second runway, the apron building and other facilities. Consultants from Singapore's Changi Airport are also expected to come in a couple of months, to take up the job of airport's overhaul. That was held up for transfer of airport.
Sinha said the cost of Mihan had gone down to some extent, though he said he would not be able to provide the exact amount at this point. Earlier, in January 2008, when Sinha announced MADC and AAI agreement to form the joint venture, he said that the delay had increased the cost to Rs 2,200 crore. He said now some of the changes proposed in the terminal building have been struck down and that would save some money.
Mihan was conceived in 1998-99, with Vidarbha Economic Development Council vehemently taking up the issue. The then member of parliament Vilas Muttemwar and the guardian minister Nitin Gadkari took it up with the central and the state governments. VED's founder president, Govind Daga, said that it was planned against the backdrop of Hong Kong merging with China. It was assumed that investors would now turn to India from Hong Kong as it was going under a communist regime.
The economy was also growing at a fast clip then. The area did not have much inhabitation, and so it was decided to scrap City and Industrial Development Corporation's (CIDCO's) Meghdoot township project and replace it with Mihan.
current economic situation has pushed back this ambitious project by at least five years. "As against the target of setting up the multimodal international hub in Nagpur (Mihan), in a full-fledged manner by 2035, it would now go to 2040," MIPL's chairman R C Sinha told TOI.
It was envisaged that by 2035, Mihan should have been able to have a parking capacity of 95 aircraft, handle 8 lakh tonnes cargo, and 14 million passengers each year. The current estimates show air traffic down by 8%, which would have its impact on Mihan. “However, if the economy revives there are chances that the project could be completed earlier,” he added.
MIPL would now begin scouting for strategic third partner to pool in funds along with AAI and Maharashtra government for developing the air cargo hub. However, it would be done over a period of time, as a consultant would be first appointed to conduct an appraisal. The partner would be finalised on the basis of the consultant's findings. The whole process is expected to take at least 6-7 months or even more. It also depends on the willingness of the third party.
In short-term, MIPL will focus on improving services at the present airport. It would also look at players like Deccan 360 starting their own logistics hub. "The road and rail hub is expected to start in four years or so. The capacity of these hubs can be expanded according to demand, all we would need to do is set up more warehouses," said Sinha. The rail and road hub spread over 83 acres is being developed by M/s Nagpur Sical-Gupta Logistics.
Sinha said that in coming years MIPL would be spending Rs 200 crore on the airport. It includes setting up of the second runway, the apron building and other facilities. Consultants from Singapore's Changi Airport are also expected to come in a couple of months, to take up the job of airport's overhaul. That was held up for transfer of airport.
Sinha said the cost of Mihan had gone down to some extent, though he said he would not be able to provide the exact amount at this point. Earlier, in January 2008, when Sinha announced MADC and AAI agreement to form the joint venture, he said that the delay had increased the cost to Rs 2,200 crore. He said now some of the changes proposed in the terminal building have been struck down and that would save some money.
Mihan was conceived in 1998-99, with Vidarbha Economic Development Council vehemently taking up the issue. The then member of parliament Vilas Muttemwar and the guardian minister Nitin Gadkari took it up with the central and the state governments. VED's founder president, Govind Daga, said that it was planned against the backdrop of Hong Kong merging with China. It was assumed that investors would now turn to India from Hong Kong as it was going under a communist regime.
The economy was also growing at a fast clip then. The area did not have much inhabitation, and so it was decided to scrap City and Industrial Development Corporation's (CIDCO's) Meghdoot township project and replace it with Mihan.
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