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Vidarbha: Hope, despite many let-downs, in the centre of the country

The Mihan project, which has drawn biggies from many sectors, could be a game-changer for the region in Maharashtra

Nivedita Mookerji Nagpur
Last Updated : Aug 07 2013 | 9:39 AM IST
An imposing W-shaped building stands at the centre of a dream project that could help turn around the fortunes of the Vidarbha region, in the news again due to demands that it be made into a separate state. However, more than a decade after it came about, the Multi-modal International Cargo Hub and Airport at Nagpur (Mihan), packaged with a township, information technology (IT), logistics and a healthcare project on the outskirts of the orange city, has failed to deliver. For this, the slowing economy, absence of political will and the Vidarbha-versus-western Maharashtra (read Mumbai and Pune) turf war has often been blamed.

Now, MADC (Maharashtra Airport Development Company), often referred to as the 'W' building here and which has played the lead role in developing Mihan, is working to help the project take off. It has already invested about Rs 2,000 crore into the project.


Despite many let-downs, many feel Mihan holds out hope. With 11 districts, Vidarbha accounts for a significant chunk of Maharashtra's mineral and forest resources. Also, it produces surplus power.

Need to market
On the sidelines for long, Nagpur is waking up to the need to market itself. This includes hard-selling 'zero mile', symbolised by a non-descript pillar close to the impressive Reserve Bank of India building here.

Zero mile denotes the centre of India - a possible incentive for business from and around Nagpur. The proposal to roll out a centralised Goods and Services Tax regime is believed to have prompted companies to opt for Nagpur as a logistics hub.


Betting on IT
Driving along the 40-km Mihan stretch, one can see the facilities of leading IT companies, mostly under construction. Tech Mahindra was the first to move here and, not surprisingly, it got the best location, said S K Chatterjee, superintending engineer at MADC. Infosys and Tata Consultancy Services (TCS) also have facilities here, as do construction company Shapoorji Pallonji and American aviation firm Boeing, which has its maintenance-repair-overhaul (MRO) hub for Air India.

Among retail chains, Future Group, which has its back-end operations housed here, was among the first to set up base. Housing projects of real estate companies such as Mahindra Bebanco Developers and Reatox Builders are underway, though demand is yet to pick up. In 2007, DLF had bought 140 acres here but since then, it hasn't made any significant move. Business process outsourcing company Caliber Point is said to be the first to be up and running in the area.

Now, all eyes are on the big boys of IT - TCS, Infosys and Tech Mahindra - which are expected to begin operations in the next six-18 months and employ thousands.


Till demand picks up, hotel chains and healthcare companies are going slow. American healthcare chain Johns Hopkins, in a joint venture with India's Care group, had booked about 74 acres for a state-of-the-art health complex, but defaulted on payments. Among the 52 companies allotted land in the Mihan special economic zone (SEZ), Lupin is the sole healthcare/pharmaceuticals company.

Spread over 4,300 hectares, the Mihan project was approved by the state government in 2002. Subsequently, however, it was caught in land acquisition and compensation disputes. It was expected the project would directly employ 125,000 by 2030, but so far, it has employed only 700.

Promise & disappointment
Vikas Jain, joint director of industries for the Vidarbha region, says investment of up to Rs 58,000 crore from 130 large and mega proposals is likely within five years. However, many doubt this, as about Rs 15,000 crore worth of projects might be routed through the Gadchiroli district, known for Naxalite activities.

Currently, 339 large and mega units operate in the Vidarbha region. Also, there are about 20,000 small and micro industries. It is estimated about Rs 24,190 crore has been invested here since 1991.

What FDI?
There are no clear numbers on the quantum of foreign investment that has flowed into Vidarbha. Polyester staple fibre company Indo Rama Synthetics, which has a manufacturing base at Butibori (an industrial suburb of Nagpur), is frequently cited as the most significant single foreign investment here. In this case, the investment was recorded many years ago. At the Mihan complex, which allows 100 per cent foreign direct investment, Boeing is the sole foreign presence, though Johns Hopkins has also been allotted land.

Add-ons
Now, the administration is also talking of other mega projects in Nagpur and its adjoining regions. B V Gopala Reddy, divisional commissioner, says a state-of-the art golf course is being planned in the city. He also mentions the well-known Vidarbha Cricket Association stadium. A metro rail project is also being considered. Early this year, Advantage Vidarbha, an initiative to woo investors, was kicked off. "The advantage of Nagpur as a city for the future will soon be realised," says Reddy.

Though Nagpur emerged on the IT map in 2001, the scale was small. Now, the IT SEZ in Mihan, with some of the leading companies lining up their facilities, holds promise of a new tech wave. And, many IT parks are being planned in other parts of Vidarbha. Hopes are also being pinned on textiles - Nagpur, Amravati and Yavatmal are being targeted as hubs.

An official said Mihan would be a game-changer for Vidarbha within five years. If it doesn't, fears of brain-drain would continue - brain-drain not to another country, but to places much closer home such as Mumbai, Pune and Bangalore.

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First Published: Aug 07 2013 | 12:45 AM IST

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