Finally, Centre nod to Mihan land swap with IAF

Nagpur: The roadblock which had held up the ambitious Mihan project for over a decade has finally been cleared. The union cabinet on Wednesday approved exchange of the land off Wardha Road, between Airports Authority of India (AAI) and Indian Air Force (IAF). The latter will be handing over 278 hectares of land to AAI, to be finally used for the Mihan project.
Though the special economic zone (SEZ), has been set up with more investors being wooed in it, the cargo hub, which formed basis of the entire project, could not take off all these years.It was because the land mass which Maharashtra Airport Development Company (MADC) needed for cargo hub was not in its possession.
It was to take over the IAF land spread in 278 hectares for Mihan and in turn offer 400 hectares in the vicinity. Even though an MOU was signed to this effect was signed in 2008, the final approval was awaited. Since the cargo hub hinged on the land swap, this project could not take off till it happened.
However, by the time the approval comes, the projections of the Mihan project have been drastically cut. The project cost is reduced by close to half of the original estimates of 2001. The current cost is pegged at Rs 1,500 crore as against Rs 2,850 crore originally. The estimates for cargo and passenger traffic has also been cut to similar levels. The new projections have been made considering the current scenario
The IAF land is located in five different pockets which is preventing the development of an integrated airbase. IAF needs a single plot for the expansion or runway and other development. At the same time, IAF land in the airport boundary is needed for the Mihan project. The land swap deal is beneficial for both Miihan as well as the IAF which has planned its Gajraj (IL-78 transport aircraft) base, said a government press release. Though the press release has mentioned Gajraj Base, the IL-78s have been shifted from Nagpur over two years ago, replacing it with a helicopter unit.
Once the land is in possession, MADC will go ahead with the process of issuing request for qualification (RFG) for private investors in this project. A draft RFP is ready and will be issued soon. This will be a process of shortlisting the parties which can bid for the project, said Tanaji Satre, the vice-chairman-cum-managing director of MADC. Since the IAF also wants a runway close to the new site, the investor will be required to built it, in the first phase, he said.
Though the land swap has been cleared, it will only come in a roundabout manner. The land will first go to AAI which is expected to hand it over to the MADC, which will be offering the alternate land to IAF. The MADC may then transfer the land to Mihan India Limited (MIL), which is a joint venture of AAI and MADC, and the agency developing the airport and cargo hub. MADC is in-charge of the SEZ. The land to be handed over to AAI will also include 116 hectares out of 278, already in its possession. Both AAI and IAF are disputing over the ownership of a 116 hectare patch.
TIMELINE
* Mihan is conceived in 1998 with plan mooted to use IAF land and give it an alternative site
* The issue lingers till 2008 when an MOU on land swap is signed
* Only two years before this, the proposed joint venture between AAI and Maharashtra Airport Development Company (MADC) for developing the airport and cargo hub is formed
* Cargo hub envisages having multimodal transport hub in Nagpur considering its central location. The modes include air, road and rail
* By 2006, the SEZ besides it was in an advanced stage with major IT players being allotted land. However, till date, not many have started operations
* There was not much progress on airport front due to the pending land swap
* In 2014, the grandiose projections on cargo and passenger traffic originally made for Nagpur were cut down to half
* Time lag for achieving the peak levels is now increased by a decade to 2045