| Date: |
20-11-2014 |
| Subject: |
New report scales down Mihan projections |
NAGPUR: Over a decade after the conception of the ambitious Multimodal International Cargo hub and airport at Nagpur (Mihan) project, its estimates have been adjusted to ground realities. As against the grandiose projections made by L&T Ramboll in its original techno-feasibility report published in 2001, a revised master plan put up recently finds the earlier targets unachievable.
Though the new report by Delhi-based M/s India Aviation Consulting and Support LLP, has not directly commented on the earlier study, it has halved the projections on both passenger and cargo traffic. The changed scenario in the aviation sector is the basis of the new estimates.
The report also considers the fact that part of land required for the project depends on Indian Air Force shifting its base, which is entirely dependent on providing a new runway for its operations. The matter continues to remain pending.
It was considered that it may not be possible to attract a third party investor for developing the city airport as an international hub on the basis of earlier projections which entails a higher cost.
As against L&T Ramboll's projections of attracting a passenger traffic of 14 million per annum till 2035 starting from 2005 onwards, India Aviation puts the figure at 7 million to be only achieved till 2045. Now, the growth will be measured from 2015 onwards. Similarly, the estimates for cargo have been cut to 60,000 metric tons as against 8.70 lakh MT, projected in the first report. This will also bring down the project's cost estimation for capital expansion, to Rs 1,510 crore. The new estimates are down by over Rs 1000 crore as compared to the original ones, said a source. At present, the yearly traffic is over 1.2 million with cargo being up to 340 metric tons.
Mihan India Limited, (MIL), the company executing this project, will be inviting the bids from third party investors on the basis of the new report. The estimates were forwarded to Ernst&Young, also a consultant on Mihan which has prepared a draft request for qualification (RFQ). The RFQs lay down the procedure for shortlisting the parties which can be eligible for making financial bids.
The RFQs are expected to be floated soon and an approval from the MIL's board of directors is awaited on this issue. MIL is a joint venture between state government's Maharashtra Airport Development Company (MADC), and Airports Authority of India (AAI).
The earlier estimates were based on a different scenario when the sector was experiencing a boom. However over the period of time the situation changed and the sector also saw a decline.
The current report considers a modest growth rate of 8% to be achieved towards end of the period. For the initial period, growth projections are between 6% to 7%. The projections also included the traffic the proposed SEZ, which is also a part of the project, may generate. However, it was found that the SEZ can only provide a marginal addition on the whole, the source said.
The design of the terminal building will now remain modest so that optimum space can be utilized, though there will be a scope for expansion. Even as the estimate have been revised, the earlier model of air cargo hub shall continue.
Source : timesofindia.indiatimes.com
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