NAGPUR: There's no denying that there was a lot of hype when Mihan was first proposed, began Govind Daga, who was president of Vidarbha Economic Development (VED) Council when the project was first proposed. However, he explains that such a big ticket project was required to draw attention to the region. VED Council was the agencies that mooted the project.
"Another MIDC would never have got so much publicity. We needed something to catch the imagination of the people and the industry, so global logistics was targeted. However, that does not mean the concept itself was flawed. That time was perfect to start work on a cargo hub. Can you even think of starting a project this big so close to the city today? Also, Mihan is even today the only hope for the region, and can work out well. You can't judge it on a 10-year scale, give it at least 20-25 years before gauging its success," he said.
Pravin Darade, chief of Nagpur Improvement Trust (NIT) and joint managing director of Maharashtra Airport Development Corporation ( MADC), said, "The concept of a cargo and trading hub at Nagpur was first proposed by the British due to the city's central location. However, to make it economically viable, we had to add elements like the Special Economic Zone (SEZ) for IT industry and the sort."
However, trade activist BC Bhartia disagreed with both. He said that no one had done the basic homework before plugging Mihan. "They first took the decision and then spent the next 10 years trying to justify it. In fact, it was a ploy to grab land, and had nothing to do with development. If the cargo hub was viable, why bring in the SEZ in the first place? The focus should have been on a sector that was viable here. But not all investors are being given land in Mihan. In all this, the farmers have been made the villains and branded as anti-development when they refused to give up land for paltry prices."
Darade interjected to say that there has not been any land grabbing. "The land allocation has been transparent. Of roughly 7,000 hectare land with Mihan, some 1,700 has been allotted to 53 companies. Of these 18 have started work. Ten companies are fully operational, of which nine are in the SEZ area."
Daga, too, clarified that not all investors can be allotted land, as there are various requirements to be met. "Without such restrictions, critics would again allege land grabbing!" he remarked.
Sanjay Jain of Abhijeet Group, which has set up a dedicated power plant for Mihan, added, "You need a big name to attract investment in any project. The cargo hub idea was unique, it created a lot of interest, but hype alone will not sustain it for long. However, economic development is the aim, whether in the name of Mihan or SEZ, so whether the Mihan concept was flawed is no longer important. What matters is that we now have great infrastructure in place at Mihan. What we need now is good marketing by the state and the centre in the international markets. National bodies like FIand CII have been lacking here, and have moved only in the last one year."
Praful Gudadhe, corporator from the area being acquired under Mihan, objected to this view. He said, "Land acquisition has speeded up in the last one year. However, there are still no industries in over 80% of the 7,000 hectares acquired by Mihan. There is no movement on the logistics industry, so how can you say the concept of Mihan is still relevant? We have not been able to entice even 6 of the 600 places flying over Nagpur every day to land here. Some describe it as an effect of recession, but I see the loss suffered by farmers as a side effect of globalization."
Ashok Mundhada of Gupta Coal, too, was of the opinion that the idea of Mihan was not feasible but hyped too much. "Even Butibori saw such hype when it was first proposed, but is not a success even today. All these projects are only successful in getting votes for politicians, in the short term at least. In fact, farmers should sue the state government if the land is not being used for the purpose it was acquired for. Mihan has not fulfilled any of its promises; it does not have industry nor are aircraft, trains or trucks coming here to exchange cargo. This is why, the present investors are in fact losing money here."
Daga reiterated here that any project at this scale requires at least 25-30 years to be successful.
Darade admitted that there had been delays in Mihan. However, he claimed that the global recession of 2008 and then the slowdown due to the Eurozone crisis are to blame for the lack of activity and interest in Mihan.
Mundhada conceded that the recession was harming economic development. However, he also blamed politicians for not doing enough for the project or the region.
Jain said, "Mihan is a larger concept. Politicians are but a small part of the project. Look at it like computers; they were supposed to take away jobs but are now the engines of all-round growth. Similarly, for Mihan, the stage where it draws criticism is almost at an end. Soon, people will accept it and development will flow from the project."
Bhartia said that there is huge support for Mihan, but nothing on the ground. "It has been marketed to Nagpur, but not to the world outside!" he said.
Talking about what it would take to promote Mihan, Darade said the government was taking steps to finish land acquisition. It was also giving more time to investors to start work on the ground in view of the recession.
Mundhada said, "Instead of only cargo, we need to focus on specific sectors like automobile or pharma sector. Political will is required to push Mihan."
Baba Dawre, who has been fighting for farmers who have lost their land to Mihan project, said, "Nagpur is known for its oranges. Why doesn't Mihan focus on industries related to this which will also benefit farmers? Instead, we have always lost our land close to the city for everything else, from Meghdoot project, to the airport to Air Force's Gajraj to the MIDC. We don't oppose development or even Mihan as such, but why make farmers suffer for the growth of everyone else?"
Gudadhe also supported Dawre, "As land owners, we have a right to question the need for the second runway, when the present runway can accommodate at least 600 flights a day. There's no need to displace us at a loss. There seems to be a deliberate attempt to target some sections or individuals."
Darade insisted that there is no question of targeting anyone. "Such projects are for the good of the society at large. I agree that land could have been acquired by negotiation, as done recently, instead of compulsorily. We missed the bus in the first part of last decade since we didn't take the farmers along."
Here again, Gudadhe and Bhartia objected to the basic move to take land from farmers to benefit the rest of the society. Gudadhe said that if protests can lead to land acquisition being cancelled, it signifies that the acquisition was not required in the first place. "Why are farmers getting a pittance for their land when they don't benefit from industries? Instead, why not promote agriculture or dairy industries that promote employment. Government policies are forcing farmers away from farming."
Others weighed in on both sides of this point. Bhartia claimed that farmers are taxed even on the compensation they get while the industries get concessions on all taxes in the SEZ and such big projects, which is unfair. Daga and Jain opposed any comparison between these taxes and concessions, as they are levied on differing criteria.
The talk also turned to the profits reaped by builders, who have purchased land near Mihan and sold flats and plots at a huge profit. Builder Sunil Duddalwar said here that at present, with Mihan not working out as planned, people like him are stuck with flats and plots that they cannot sell at rock bottom prices. "The skewed government policy is responsible for this state of affairs," he said.
Jain said the increase in real estate prices in and around Nagpur was a by-product of Mihan. Darade remarked that more than anyone else, the builders sold Mihan very well and profited from it.
As for the way forward, there were many differing opinions. The opposing voices said that Mihan is not viable, and further land acquisition should be stopped. Some said the project is only likely to benefit the next generation, and not the present one if it continues at this pace.
The majority opinion, though, was that quick decisions are needed to see some action on the ground, like setting strict time frame for industries to start generating revenue from land they get at a concessional rate. Most agreed that a little push from the government could ensure the present generation also benefits from Mihan.
"Another MIDC would never have got so much publicity. We needed something to catch the imagination of the people and the industry, so global logistics was targeted. However, that does not mean the concept itself was flawed. That time was perfect to start work on a cargo hub. Can you even think of starting a project this big so close to the city today? Also, Mihan is even today the only hope for the region, and can work out well. You can't judge it on a 10-year scale, give it at least 20-25 years before gauging its success," he said.
Pravin Darade, chief of Nagpur Improvement Trust (NIT) and joint managing director of Maharashtra Airport Development Corporation ( MADC), said, "The concept of a cargo and trading hub at Nagpur was first proposed by the British due to the city's central location. However, to make it economically viable, we had to add elements like the Special Economic Zone (SEZ) for IT industry and the sort."
However, trade activist BC Bhartia disagreed with both. He said that no one had done the basic homework before plugging Mihan. "They first took the decision and then spent the next 10 years trying to justify it. In fact, it was a ploy to grab land, and had nothing to do with development. If the cargo hub was viable, why bring in the SEZ in the first place? The focus should have been on a sector that was viable here. But not all investors are being given land in Mihan. In all this, the farmers have been made the villains and branded as anti-development when they refused to give up land for paltry prices."
Darade interjected to say that there has not been any land grabbing. "The land allocation has been transparent. Of roughly 7,000 hectare land with Mihan, some 1,700 has been allotted to 53 companies. Of these 18 have started work. Ten companies are fully operational, of which nine are in the SEZ area."
Daga, too, clarified that not all investors can be allotted land, as there are various requirements to be met. "Without such restrictions, critics would again allege land grabbing!" he remarked.
Sanjay Jain of Abhijeet Group, which has set up a dedicated power plant for Mihan, added, "You need a big name to attract investment in any project. The cargo hub idea was unique, it created a lot of interest, but hype alone will not sustain it for long. However, economic development is the aim, whether in the name of Mihan or SEZ, so whether the Mihan concept was flawed is no longer important. What matters is that we now have great infrastructure in place at Mihan. What we need now is good marketing by the state and the centre in the international markets. National bodies like FIand CII have been lacking here, and have moved only in the last one year."
Praful Gudadhe, corporator from the area being acquired under Mihan, objected to this view. He said, "Land acquisition has speeded up in the last one year. However, there are still no industries in over 80% of the 7,000 hectares acquired by Mihan. There is no movement on the logistics industry, so how can you say the concept of Mihan is still relevant? We have not been able to entice even 6 of the 600 places flying over Nagpur every day to land here. Some describe it as an effect of recession, but I see the loss suffered by farmers as a side effect of globalization."
Ashok Mundhada of Gupta Coal, too, was of the opinion that the idea of Mihan was not feasible but hyped too much. "Even Butibori saw such hype when it was first proposed, but is not a success even today. All these projects are only successful in getting votes for politicians, in the short term at least. In fact, farmers should sue the state government if the land is not being used for the purpose it was acquired for. Mihan has not fulfilled any of its promises; it does not have industry nor are aircraft, trains or trucks coming here to exchange cargo. This is why, the present investors are in fact losing money here."
Daga reiterated here that any project at this scale requires at least 25-30 years to be successful.
Darade admitted that there had been delays in Mihan. However, he claimed that the global recession of 2008 and then the slowdown due to the Eurozone crisis are to blame for the lack of activity and interest in Mihan.
Mundhada conceded that the recession was harming economic development. However, he also blamed politicians for not doing enough for the project or the region.
Jain said, "Mihan is a larger concept. Politicians are but a small part of the project. Look at it like computers; they were supposed to take away jobs but are now the engines of all-round growth. Similarly, for Mihan, the stage where it draws criticism is almost at an end. Soon, people will accept it and development will flow from the project."
Bhartia said that there is huge support for Mihan, but nothing on the ground. "It has been marketed to Nagpur, but not to the world outside!" he said.
Talking about what it would take to promote Mihan, Darade said the government was taking steps to finish land acquisition. It was also giving more time to investors to start work on the ground in view of the recession.
Mundhada said, "Instead of only cargo, we need to focus on specific sectors like automobile or pharma sector. Political will is required to push Mihan."
Baba Dawre, who has been fighting for farmers who have lost their land to Mihan project, said, "Nagpur is known for its oranges. Why doesn't Mihan focus on industries related to this which will also benefit farmers? Instead, we have always lost our land close to the city for everything else, from Meghdoot project, to the airport to Air Force's Gajraj to the MIDC. We don't oppose development or even Mihan as such, but why make farmers suffer for the growth of everyone else?"
Gudadhe also supported Dawre, "As land owners, we have a right to question the need for the second runway, when the present runway can accommodate at least 600 flights a day. There's no need to displace us at a loss. There seems to be a deliberate attempt to target some sections or individuals."
Darade insisted that there is no question of targeting anyone. "Such projects are for the good of the society at large. I agree that land could have been acquired by negotiation, as done recently, instead of compulsorily. We missed the bus in the first part of last decade since we didn't take the farmers along."
Here again, Gudadhe and Bhartia objected to the basic move to take land from farmers to benefit the rest of the society. Gudadhe said that if protests can lead to land acquisition being cancelled, it signifies that the acquisition was not required in the first place. "Why are farmers getting a pittance for their land when they don't benefit from industries? Instead, why not promote agriculture or dairy industries that promote employment. Government policies are forcing farmers away from farming."
Others weighed in on both sides of this point. Bhartia claimed that farmers are taxed even on the compensation they get while the industries get concessions on all taxes in the SEZ and such big projects, which is unfair. Daga and Jain opposed any comparison between these taxes and concessions, as they are levied on differing criteria.
The talk also turned to the profits reaped by builders, who have purchased land near Mihan and sold flats and plots at a huge profit. Builder Sunil Duddalwar said here that at present, with Mihan not working out as planned, people like him are stuck with flats and plots that they cannot sell at rock bottom prices. "The skewed government policy is responsible for this state of affairs," he said.
Jain said the increase in real estate prices in and around Nagpur was a by-product of Mihan. Darade remarked that more than anyone else, the builders sold Mihan very well and profited from it.
As for the way forward, there were many differing opinions. The opposing voices said that Mihan is not viable, and further land acquisition should be stopped. Some said the project is only likely to benefit the next generation, and not the present one if it continues at this pace.
The majority opinion, though, was that quick decisions are needed to see some action on the ground, like setting strict time frame for industries to start generating revenue from land they get at a concessional rate. Most agreed that a little push from the government could ensure the present generation also benefits from Mihan.
No comments:
Post a Comment