After Boeing, other majors queue up for Nagpur

It seems the US-based aircraft manufacturer Boeing Inc's decision to set up a $100 million maintenance, repair and overhaul (MRO) facility here has catapulted Nagpur to the international orbit.

The Maharashtra Airport Development Corporation (MADC) is flooded with feelers from international and domestic firms keen on setting up base in Multimodal International Air Hub, Nagpur (Mihan). These include logistics firms, software companies and those engaged in MRO of aircraft.

Officials from Sabina Technique, a division of now-defunct Sabina Airlines of Belgium, visited the Mihan site. Though the airline has been dissolved, Sabina Technique "" its MRO unit "" continues to be operational.

Sabina Technique appears to be keen on starting operations in the cargo hub area, said R C Sinha, managing director, MADC. A formal proposal is, however, still awaited after which the corporation would take steps forward, he added.

Amsterdam-based logistics major TNT and courier giant Fed-Ex have also conducted a similar survey of the hub. These companies might set up a transit hub in Mihan. A similar exercise was undertaken by Asenta, an information technology company owned by the Singapore government, said Sinha.

Although no formal proposal had come up from these companies, it was clear that they were serious about their plans, said Sinha.

According to estimates made by MADC's consultants, SWK India, the entire project may attract an overall investment of $1,250 million in phases. This comprises the amount spent on infrastructure and other capital expenditure by the firms setting up establishments in Mihan, he said.

The figure has been calculated on the basis international norms, considering the business sector where India has an edge over others. It is estimated that the whole set-up would provide direct employment to around over 1 lakh persons. Ancillary industries would generate separate employment, said Sinha.

MADC's own investment would be around Rs 4,000 crore of which Rs 400 crore had already been provided for by the state government, said Sinha.

Other modes of raising money would also be considered in coming years.