About Nagpur

Table of Contents

  • - Introduction - Scope and Opportunities in Nagpur
  • - MIHAN project and present city infrastructure
  • - Employment and housing potential
  • - Some projects under operation

1. Introduction Scope and Opportunities in Nagpur:

Maharashtra is the most progressive state of India and is called the economic powerhouse. The state govt. of Maharashtra is making all out efforts to accelerate the pace of development and invite investments in the state both from the country as well as Foreign Direct Investments. Nagpur is the second capital of Maharashtra and has strategic central location in India as well as the international aviation routes. It has a great agricultural and mineral rich hinterland with huge forests. Nagpur is also the educational and business center of central India and it has about 27 engineering colleges and 13 Medical colleges in and around the city. Every year about 8500 engineers and about 3000 doctors are graduating from these colleges.
It has connectivity to all parts of India, both by National highways as well as main trunk rail routes and also the air connectivity.
Nagpur is also the central point between the various air routes like South Africa and North East asia, Russia and south east Asia, Europe and South East Asia, Europe and Australia.
This has created a demand for a hub airport at Nagpur with Multimodal passenger and cargo hub. The Nagpur hub airport will have traffic from the following aspects:
a) Growth of Origin-Destination of domestic and international traffic for Nagpur region for a radius of 500 Km due to regional development and growth, increased tourism potential and diversion from other modes.
b) Domestic hub-and-spoke traffic and international hub-and-spoke traffic
c) Diverted traffic from other congested Indian airports and neighboring international airports.

The proposed international Airport will help Nagpur to emerge as a leading international tourist gateway for India providing a number of new tourism route options, especially for Adventure, Wild life and Buddhist tour circuits.
Currently total international tourist traffic (according to Department of Tourism GoI) to India is estimated at 2.5 million passengers per year. The average growth over the last 15 years is around 4% p.a. According to reliable world forecasts (World Development indicators) the future foreign tourism projections to India are worked out at 3.95 Million tourists by 2010.
Most leading tourist spots in the country attract anywhere between 5 to 14% of the total foreign tourists visiting India destinations (Report of the national committee on tourism- Planning Commission). Nagpur is also expected to generate this kind of traffic within next 30 years.
The potential for creating an international hub airport at Nagpur can be gauged from the fact that there is hardly any Hub Airport in a 5-hour fly-zone from India (i.e. between Dubai and Bangkok). All over the world there are clusters of hub airports within 1 to 2 hours of fly zone.
Much smaller countries around India over the years have successfully set up major hubs and are drawing huge transit traffic. India has all the ingredients- location, economy, population etc. for having not one but at least 2 major hub Airports. The current World situation clearly indicates potential new opportunities opening up for India in near future in terms of likely shift of transit traffic at Middle East to other safer destinations like India.
Easy Access to almost 10% of the potential International hubbing traffic in the form of currently 400 over-flying flights over the City (accounted by almost 55 different Airlines) has created the possibility for development of the best multi-modal infrastructure in the country within MIHAN.
With the advent of multi-tier economic growth plans being implemented by the government in the Vidarbha region of India, the expanse and importance of various projects has grown manifolds during last few years. The same is very much visible and is being augmented by exponential escalation in:
Living standards

  • Land costs
  • Business Diversifications
  • Future plans being slated by globes major blue chip giants
  • Investments by all major M. N. Cs during last couple of years
  • Projections by major financial institutions for forthcoming financial year
  • Interest of Governments and Administrative bodies

This has resulted in a need to create a centralized location for well conceived, organized and executed projects that would be having an incubation duration spread over 15 years to be sequenced by an execution duration spread over next 15 years. The selection; hence, of the city based on the fact that there should be an existing infrastructure in-place; has naturally hovered over Nagpur.
Due to all these factors, in the last few years Nagpur was made home to a number of mega projects with global importance. Namely:
Multi-Modal International Hub Airport at Nagpur (M. I. H.A.N.)

1)Airport Complex

  • Terminal Building with 3 fingers (2 for International & 1 for domestic traffic)
  • Parking for 40 60 aircrafts
  • Remote parking for 50 aircrafts
  • 36 Boarding Bridges
  • Duty free shopping center
  • 2 x 4000 m x 60m runways
  • Taxiways & Aprons
  • 6 Aircraft MRO hangers
  • Control tower & other facilities

2) Airport Facilities Complex

  • Mass Rapid Transit System (M.R. T. S.)
  • Car parking (short / long term)
  • Cargo terminals
  • Shopping complex
  • Hotel with 500 rooms
  • Commercial areas
  • Other amenities

3) Inland Container Terminal & Truck Terminal
4) Value Added Commercial Services Complex
5) Utilities Area
6) Convention Center Complex
7) Exhibition Complex
8) Infrastructural Facilities

Air Force Area Gajraj Complex
Residential Complex
Resettlement Area for PAPs
External Roads & Railway Exchange Yards
Butibori Special Economic Zone

MIHAN I-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:
(1) Passenger and cargo aircraft are free to land without reference to international bilateral rights.
(2) 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 SEZs, Simplification of Policy issues related to borrowings, etc.
(3) Easy accessibility to potential markets
(4) Low manpower costs
(5) Stable economic and political environment
(6) Full benefits of being located in an international logistics hub like delivery of finished goods to the consumers within 12hours.
(7) Highly educated and skilled workforce due to the fact that Nagpur is the educational hub of central India.
(8) Low cost and easy, abundant availability of land.
(9) Proximity to the vast coal mines and power plants.
(10) Located on the low seismic zone.
(11) No war zone-located at least 1000km away from any internationa 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.

MIHAN project and present city infrastructure

2.1 Multi modal International Hub Airport at Nagpur (MIHAN)
MIHAN is a project one of its kind in the heart of India. Spread over an area of 4025 Hectares. The Multi-modal International Hub Airport at Nagpur, would not only play a major role in the development of Vidarbha region but will benefit the state and the country as a whole.
MIHAN is an Ideal business hub, centrally located and easily accessible to all the metro cities of India. A final destination for all business related needs, supported by excellent infrastructure, easy and fast procedural systems and continuous support and service through one window operation.
Techno Economic feasibility report for the MIHAN project was prepared by a consortium of internationally experienced consultants of repute led by L & T RAMBOLL Consulting Engineers Limited. The project would consist of:
International Airport -
Developing the existing airport in Nagpur to international standards and making it a unique Multi - modal International Hub
Airport in the world. The airport would consist of two parallel runways, each of length 4000 meters and 60 meters width respectively, which would cater to a projected traffic of 18 million passengers and 8,70,000 tons of cargo a year by 2030.
Special Economic Zone (SEZ)
Spread over an area of 1475 Hectares. The SEZ adjacent to the Nagpur airport will be an added advantage and trigger development of various activities in the region, with ample business incentives, trade concession and above all one window operation creating an efficient environment, committed entirely to do business. This SEZ would consist of:
Information Technology Park (I. T. Park)
Developing a state-of-the-art Information Technology Park covering an area of about 400 Ha, It would meet all the requirements of setting and operating an IT industry.
Health City
Spread over an area of 60 Ha. It would consist of a number of multi specialty hospitals providing super specialty treatments of international standard levied at Indian cost to meet the needs of not only the surrounding states but also the neighboring and other countries. It would also consist of a training institute for nurses and medical technicians.
Captive Power Plant (CPP)
This Eco friendly coal based power plant would generate uninterrupted power to meet all the electricity consumption needs of the entire SEZ, at most economical rates.
Manufacturing & Other Value Added Units
These would consist of Textile and Garment Zone, Gem & Jewellery Zone, Food Processing Zone and other sectors like Pharmaceuticals, Financial & Insurance Service and Bio Medical Sector.
The project would also be facilitated with a Rail and Road Terminal with warehousing facilities & other ancillary to meet the logistic needs of the region and the state.
It would also consist of an International school with Spanish and French speaking teaching centre, which would suffice the educational needs. A full fledge recreation center for people to be entertained and spend their leisure time and adjoining the SEZ will be a top grade residential and commercial complex with entertainment facilities.
While the development of mega projects is being looked after by various government bodies and on the other hand, the development of Nagpur is being looked after by another body called Nagpur Improvement Trust (N. I. T.)

2.2 Present City Infrastructure in Nagpur
Even before selection of Nagpur for all the mentioned mega projects, the city already had a very sturdy infrastructure in-place since long. Known as the second capital of Maharashtra State, the city has good laid out roads and a well spread development going on.
Industrial giants like Mahindra & Mahindra, Indo-Rama, Electrolux and many others are operating in the region since long. Organizations like N. E. E. R. I., Reserve Bank of India (Accounts), and Indian Air Force have also made the city their prime base.
From the connectivity perspective, Nagpur is already well connected with almost all major cities of India by air routes, rail routes and road routes. There is no short supply of water and there is abundance of available land for any given usage from agricultural to industrial.
Well established as Orange City, Nagpur is also hub for food grain market in Vidarbha region. The city boasts of Asias biggest food grain market complex. This region also produces the biggest yield of cotton.

3) Upcoming Employment and housing potential of Nagpur:

Mihan will provide direct employment to 150,000 people and indirectly provide employment to 300,000 people.
Additionally, the combined employment potential of the various upcoming SEZs in the area will provide employment to another 500,000 people.
This means, around 4million people will inhabit the surroundings of MIHAN within the next 5-10years.
This has created a huge demand for real estate, homes, multiplexes etc. Hence this is the right time to go for projects to satisfy this huge demand for housing and infrastructure.
No wonder then, that the big groups like DLF,MANTRI,SATYAM,SAHARA,RAHEJA,SHAPOORJI PALLONJI have acquired huge lands ranging from 100acres to 600acres each for building townships of their own.

4) Here are some of the projects already in operation in and around MIHAN:





3) Reliance Power:









6) IBM