40 companies sit idle, jobs elusive in Vidarbha

Nagpur: Once projected as the economic backbone of Vidarbha and a gateway to global investment, the Multi Modal International Cargo Hub and Airport at Nagpur (MIHAN) today stands as a stark reminder of unfulfilled promises, policy paralysis and missed opportunities. Conceived nearly two decades ago as a mega growth engine to transform Nagpur into a global logistics, aviation and employment hub, MIHAN has failed to realise even a fraction of its projected potential.

Despite repeated government claims and grand investment announcements, the ground reality paints a grim picture. In recent years, around 40 companies that were allotted land at MIHAN have not commenced operations, even long after receiving possession. These include firms from key sectors such as logistics, IT, aviation, food processing and real estate, raising serious questions about project planning, policy consistency and investor confidence.

130 companies allotted land, only 52 operational

According to official data, 130 companies have been allotted land across MIHAN’s SEZ and non-SEZ zones, 78 in the Special Economic Zone and 52 outside it. However, actual operations tell a different story. Only 24 units in the SEZ and 28 in the non-SEZ area are functional, while just seven projects are under construction.

Alarmingly, nearly 30% of the allotted companies, about 40 units, remain non-operational, despite having secured land years ago. Of these, 30 are located within the SEZ, while 10 are outside it, exposing the yawning gap between land allocation and real industrial activity.

Big announcements, zero ground work

Documents from the Maharashtra Airport Development Company (MADC) reveal that several high-profile companies remain inactive despite bold investment claims. One prominent aviation firm was allotted one acre of non-SEZ land in 2021, accompanied by a Rs 4,000-crore investment announcement for aircraft repair and training facilities. Five years later, not even basic construction has begun, turning a marquee announcement into yet another empty promise.

Claims remain on paper

MIHAN has long been projected as the solution to Vidarbha’s industrial stagnation and unemployment crisis. However, not a single major new investment has materialised in the past five years, nor has any significant greenfield industry become operational. While announcements made headlines, execution remained confined to files and press releases.

Out of MIHAN’s total 2,249 hectares, industries are operational on only 1,298 hectares, leaving a massive 951 hectares lying vacant and unused, a silent testimony to administrative failure.

Costly power choking growth

One of the biggest deterrents for existing and prospective industries is the steep hike in electricity tariffs. Power rates for industries have surged from Rs 4.30 per unit to as high as Rs 7.35 per unit, severely impacting operational viability. Industry sources say the high cost of power has not only reduced production capacity of existing units but also discouraged new investors from committing to MIHAN.

Reliable sources associated with MIHAN say that while land allotments have been made to several companies, most units are yet to start operations due to investment bottlenecks, internal policy issues and procedural delays. Though correspondence is reportedly ongoing at senior government levels, tangible results remain elusive, and optimism on the ground is wearing thin.

US tariffs and power prices major roadblocks

According to Manohar Bhojwani, President of MIHAN Industries Association, global and domestic policy decisions have further dented investor sentiment. “Exports from MIHAN cater largely to the US and Western markets. American tariffs on Indian products have gone up to 50%, sharply reducing demand. At the same time, the electricity tariff, initially promised at Rs 2.85 per unit, later revised to Rs 4, has now crossed Rs 7 per unit. These two factors have made MIHAN unattractive for manufacturing and export-oriented units,” he said.

Employment dreams aall short

MIHAN has been repeatedly showcased as a future defence aviation hub, pharma hub, education hub and IT hub. While companies like Infosys, Tech Mahindra, HCL and TCS have generated employment, and operations such as Air India and Indamer MROs and Dassault–Reliance Aerospace have brought some industrial activity, the overall impact remains limited.

These enterprises together have created around 1.10 lakh direct jobs, but for a backward and underdeveloped region like Vidarbha, this number falls far short of expectations from a project of MIHAN’s scale and ambition.

Two decades after its launch, MIHAN continues to stand at a crossroads, weighed down by high costs, policy uncertainty and unkept promises, while the region it was meant to uplift still waits for the economic transformation it was promised.

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