MIHAN – Multi-Modal International Passenger cum Cargo Hub Airport at Nagpur with various Special Economic Zones (SEZ) adjacent to it, offers the following advantages to international investors and businesses:
- Passenger and cargo aircraft are free to land without reference to international bilateral rights.
- The SEZ will have all the usual concessions and facilities: Permitting hundred percent Foreign Investment, No ceiling on Domestic sales, No license required for Imports except on prohibited items, Fast track clearance for imports and exports, Exemption from Custom duty on imports, Exemption from Central Excise for purchase of capital goods and raw materials, Tax Holiday concessions, Simplification of procedures for approvals, convertibility of foreign exchange, Relaxation in applicability of Labour Laws to SEZ’s, Simplification of Policy issues related to borrowings, etc.
- Easy accessibility to potential markets
- Low manpower costs
- Stable economic and political environment
- Full benefits of being located in an international logistics hub like delivery of finished goods to the consumers within 12hours.
- Highly educated and skilled workforce due to the fact that Nagpur is the educational hub of central India.
- Low cost and easy, abundant availability of land.
- Proximity to the vast coal mines and power plants.
- Located on the low seismic zone.
- No war zone-located at least 1000km away from any international border.
The fast track execution of the aforementioned mega-projects in Nagpur has provided the city of Nagpur with a sturdy foundation to create a commercial zone.
The magnitude and scope of such a commercial zone is estimated to grow at extra-ordinary rates for next 25 years. It is predicted that the rate of growth would slow down and would start to stabilize beyond this duration of 25 years.
Business communities in and around the “Vidarbha” region having analyzed and visualized the future; are already investing heavily in all forms of real estate around the project area.
According to the project study carried out by L&T-Rambol for Maharashtra Airports Development Co., all areas in proximity of the 500 kilometers radius from Nagpur would be directly reaping the benefits of business generation by said mega-projects.
Land prices in Nagpur have already started to show the upward trend and the curve in the graphical representation is approaching right angle.
A number of local and non-local organizations / establishments have started to operate in the region with whatever investments they have. A few of them have, indeed, grown to fairly good size in terms of turnovers. The factors, behind the profits being earned by these establishments, include:
- Resettlement of Project Affected Population in adjacent areas.
- Bulk procurement of land by global business giants like ITC, Satyam, Boeing, Airbus, Ascendas, Hexaware, Dell, IBM, TCS, L&T, Shapoorji Pallonji & Company, Sahara group, Max aerospace, Raheja Builders, HCL Computers.
- Abundance and ready availability of vast areas of land around the project / development areas.
- Availability of good bargains on bulk procurement of land.
- Growing awareness among local and non – local communities about the scope and future of Nagpur.
- Active participation and willingness to stick to timelines by various government bodies.
- Disclosure of future plans for big investments by major global giants.
The scope of participation of private operators is, in fact, very much assured and can be judged from the Executive Summary Document. At present times, the future scope and opportunities in Nagpur have not been publicized anywhere outside the region.
Government of India, Government of Maharashtra, Ministry of Civil Aviation, Nagpur Improvement Trust and Maharashtra Airport Development Company Limited have initiated the process of approval of a global advertising campaign projecting the opportunities and scope of developments going on in Nagpur.
It is very much understandable that once the awareness about Nagpur goes high globally, the rush of investors would further escalate the initial magnitude of investments. At present, the initial investment levels are at moderate level and the rates of returns are being projected at the best ever.