Nagpur to become airlines hub

Has Nagpur's time finally come? Consider these facts-the city has come on the international air map with Air Arabia starting regular services connecting the city with the Middle East, low-cost airlines Air Deccan and GoAir have kicked off operations, and talks are on for setting up a special economic zone (SEZ).

Further, aircraft manufacturer Boeing plans to set up its $100 million maintenance, repair and overhaul (MRO) base here.

Recently, Chief Minister Vilasrao Deshmukh and a delegation from Boeing, led by chief executive officer Alan Mulally and senior vice-president (sales) Dinesh Keskar, met at Mumbai in this regard. Boeing said it would like to set up a $75 million pilot training facility in the country.

Praful Patel, Union civil aviation minister, who was also present at the meeting, gave a hint about plans for the city.

Domestic air services provider Indian (formerly Indian Airlines) will be setting up a centre in Nagpur and a national air training centre at Gondia, near the city. Gondia is also Patel's hometown. The minister also told the Boeing delegation the city was an ideal location for MRO base, especially in view of the latest acquisition of 68 Boeing jets by Air-India.

Besides, the state government has decided to issue an ordinance for setting up a special economic zone (SEZ). Also on the anvil is the much-publicised air passenger and cargo hub project.

The state government has floated a separate company, Maharashtra Airport Development Co (MADC), headed by R C Sinha, managing director, for overseeing this project.

Talking to newsmen here, Sinha said, the government will soon be issuing the ordinance as the bill for setting up SEZ could not be tabled during the winter session of the state legislature.

Land acquisition for the proposed SEZ is going on with the government already acquiring 1,350 hectare and handing it over to the MADC, though the total requirement is of 1,475 hectare.

Sinha said, Satyam Computer has purchased 40 hectare in the SEZ while another IT company has also made a similar purchase. An agreement is to be signed with yet another company which intends to purchase 100 acre, Sinha said.

City-based Shah Nanji Nagsi, well known grain merchants, have bought 10 acre in the SEZ. Sinha said, the Bank of Maharashtra too was upbeat on the project and has agreed to provide Rs 100 crore loan to MADC for developing infrastructure for the cargo hub.

MADC has already taken Rs 300 crore loan from various banks and financial institutions for paying compensation to people whose land was acquired for the SEZ.

Reliance and Tata Power have shown interest in setting up power plants at the SEZ and a number of companies from the hospitality sector too have made inquiries.

Ashish Paul, branch manager, ITC Ltd, here, said the cigarette major would not lag behind in setting up "an appropriate property" if other players in the hospitality sector were considering Nagpur. "If others are coming, I am sure ITC would also invest in the region," he said.

GoAir said it would park a part of its fleet at Nagpur and is also keen on starting operations on the Nagpur-Mumbai sector.

At present, Indian and Alliance Air operate two flights in the sector while Air Deccan and Jet Air too connect Nagpur with the state capital. Uncluttered skies and adequate infrastructure at the Nagpur airport has led Kingfisher and Jet Air to utilise the facility for training their pilots.

Property rates in the city and its outskirts have skyrocketed and many feel that the city has finally arrived. "We are no longer a back of beyond place. Things are finally moving," said Chander Khosla, president of MIDC Industries Association.

Nasscom chief Kiran Karnik too found the city with its clean roads, disciplined traffic and a helpful administration a good place for the IT sector, reminded Khosla. Karnik was here for an IT function and had spoken favourably about the city. "Software parks are fully booked and many more are coming," Khosla pointed out. Nagpur is happening.