The city of Nagpur was being touted as the next big logistics hub in the country, however, what started as an ambitious dream almost 5 years ago, is now just a political hype. Industries are attracted towards an area of it has high consumption or high production potential, and the Multi-Modal International Hub Airport at Nagpur – Special Economic Zone (MIHAN-SEZ) now wastes away as Nagpur fails to lure industries.
Before implementation of GST, expectations were high about Nagpur due to the significance of Zero Mile and good connectivity of roads, air and rail network. The logistics industry is definitely growing in Nagpur but the growth is not multifold. It was expected that all industries would pour in their goods in Nagpur and then distribute across the country. But the process is yet to gather pace.”Atul Rane, Chief General Manager of Container Corporation of India (CONCOR)
Mr. Rane is positive about the city’s development as logistics central as he points out that though there is no growth of the manufacturing sector in the city, logistics companies are still interested in the location. DLI Infrastructure has constructed a logistic hub at Borkhedi, while a rail siding has been developed by Worlds Window Infrastructure at Wardha. The JNPT Dry Port also commenced operations in Nagpur apart from Adani Logistics at Sindi Railway near Nagpur.
There is also the fact that post the introduction of GST, manufacturing companies want to set up operations (and warehousing) at/near places with high consumption, but Nagpur doesn’t meet that parameters unlike the existing hubs at Mumbai, Chennai, and New Delhi.
As the MIHAN-SEZ failed to become the national hub of industries, development of Nagpur as a logistics hub was not possible. Due to the failure of MIHAN-SEZ, the salary grades are not very high in Nagpur which has resulted in low consumption”Shiv Kumar Rao, Vice-President of Vidarbha Economic Development Council (VED)
There was no structured development of MIHAN-SEZ at Nagpur. Being the Zero Mile of country, the State Government should bring a logistics policy for Nagpur. If the industries get more intensive, it would definitely boost the manufacturing sector and logistic industries here. Some companies are constructing godowns on the outskirts but this is not structured growth. Manufacturing industries are needed to boost growth of MIHAN-SEZ in Central India. We have missed the timing of development of MIHAN-SEZ into an international logistic hub.”Suresh Rathi, President of Vidarbha Industries Association (VIA)
From what the many sources have to say, it seems like the reason behind MIHAN’s short-fall to help develop the city of Nagpur as a logistics hub was a result of failure of executing plans in a systematic manner. Although there was supposed to be a high air cargo potential, the authorities did not even meet up with the international importers and exporters to discuss strategic matters for development of air cargo hub. On the other hand, there was supposed to be a second runway to be developed in the last decade, which has also not seen the light of the day yet.