MADC plans aerospace and defence hub on 121 acres at Nagpur's MIHAN, targets Rs 2,000 crore investment

Preparations have begun to build an aerospace and defence hub at MIHAN in Nagpur. The hub will be developed on 121.229 acres of MIHAN land under the Nagpur airside taxiway project. The Maharashtra Airport Development Company (MADC) has started work on it. The project proposes special arrangements for aircraft movement as well as for use of a public road.

The land lies outside the notified Special Economic Zone (SEZ) at MIHAN. MADC had invited proposals to set up an industrial ecosystem for aerospace and defence components, aircraft manufacturing, assembly and related manufacturing activities. It has not yet made clear how many companies have sent proposals, but has said the process of evaluating them has begun. The company is focusing on attracting large domestic and global investors to the project.

Targets have also been set for investment and jobs. At least Rs 2,000 crore is to be invested within 10 years of the land being allotted. The project also aims to create at least 1,000 direct and indirect jobs.

According to MADC, the parcel is Plot No. 8 in Sector 10 of MIHAN, outside the SEZ area. Its area is about 4,90,596.79 square metres, or roughly 121.229 acres. The proposed uses include aerospace and defence components, aircraft manufacturing, assembly and related industrial activities.

A 15-metre-wide public road will also be built parallel to the industrial plot. It will connect the three-lane road in Sector 10 to Plot No. 1 in Sector 6, outside the MIHAN SEZ. When an aircraft arrives or departs on the proposed taxiway, public movement on this road will be stopped with temporary barricades so that the aircraft can move safely and without obstruction. The barricades will be removed as soon as the movement is over, and the road will reopen to the public.

The arrangement shows that special provisions will be needed to coordinate aircraft operations with public use of the road. The final alignment of the road and taxiway, and the detailed operating arrangements, will be decided subject to approval from the authorities concerned.

Details of the land lease and premium have also emerged. The land will be given on a 66-year lease, with a lease premium of Rs 5,700 per square metre. On the proposed area and this rate, the total premium works out to about Rs 279.64 crore. The investor will have to pay this premium to MADC in addition to the Rs 2,000 crore investment.