WELCOME

to
Presentation on
Multi-Modal International Hub Airport
at Nagpur (MIHAN)
Multi-Modal International Hub
Airport at Nagpur
Does India need a Hub Airport????
How India compares with other
neighbouring hub airport countries?
Country Airport Country Country International International
GDP Population Passengers in Cargo in Lakh
US $ Bn in Million Million tons
Total Transit Total Transit
India Mumbai 1805 1014 5 Neg. 2.3 Neg.

Thailand Bangkok 388 61 21.3 9.6 9 3.6

Malaysia KAL 229 22 11 3.3 5 1.5

Hong Chek 160 7 33 NA 20 NA

Kong Lap Kok
Singapore Changi 98 4.3 28.6 18.6 16.8 8.4

UAE Dubai 54 24 10 5 5.4 3.8

UAE Sharjah 54 1 7 5.2

 Passenger Movements at Other Airports

35

30

Comparative
25
Movement of
20
Passengers in
In Million

15
the Region

10

0
1990 1992 1994 1996 1998 2000 2002

Passengers Bangkok Passengers Singapore

Passenger Bombay
 Growth of Frieght at Other Airports
1800000

1600000

1400000

1200000

Growth of
Frieght in Tonnes

Freight Traffic
1000000

800000
in the Region
600000

400000

200000

0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Freight Singapore Freight Bangkok

Freight Shajah freight Bombay
India definitely needs a hub Airport

5 hours
Flying zone
What are the stakes involved for India?
More than 70% of the world air travel is accounted by hub
Airports in which 55% share is that of transit traffic
Share of hub airports in total air traffic is increasing
Much smaller Countries in our neighborhood have stolen a
march over us
Considerable future market might be lost if steps are not
taken right now
A major opportunity for creating a hub is opening up in view
of growing instability in Middle East. Traffic Shift from Dubai/
Sharjah on cards
Even at the current growth rates India needs at least 4 new
large international airports of 20 million passenger capacity
each in next 30 years , not to talk about additional potential
on account of the transit traffic that may go a-begging
Why Nagpur as a hub Airport??
Probably the best location from the point of view of setting a
Multi modal Hub Airport in the country -Domestic and
International. All existing Airports are constrained by various
problems
Will require minimum gestation period due to existing
operational Airport.
Logistically well connected – Maximum rail connections,
Major National Highway crossing – Figures in future express
highway projects
Almost 300 international flights over-flying City daily
Most conducive weather dynamics for air transportation
Wide catchment area spreading almost 500 kms.- accounting
for 15% of country GDP and population.
Large land availability near the existing Operational Airport.
No constraints to growth
Existing Air routes - Nagpur
Existing Rail Routes - Nagpur
Existing Road Network - Nagpur
Nagpur as potential International Hub
Airport

• Located on important international air routes

• Rich hinterland and centrally located in India
London
Moscow

• Availability of land, Govt. backing, other Beijing

Tokyo

resources
Los Angeles Miami

• Attractive & impressive facilities to be Singapore

Surabaya

developed Johannesburg
Buenos Aires
Influence Area – MIHAN as a Hub

Moscow

London

Beijing
Tokyo
Cairo
Dubai
MIHAN
Abu dhabi Hong kong

Colombo
Singapore

Johannesburg

Canberra
International Hubbing Concept
Domestic Hubbing Concept
 LOCATION OF
EXISTING NAGPUR
AIRPORT

MIHAN
What are the current Air traffic
numbers at Nagpur??
All India Market
Market Domestic International Total

Air Passengers 27 13 40
(Millions)
Cargo (Tons) 2,70,000 5,30,000 8,00,000

Nagpur
Air Passengers 0.2 NA 0.2
(Millions)
Cargo (Tons) 830 80 910
Growth of Air traffic at Nagpur
Locational Advantages of Nagpur
Multi-modal Airport infrastructure and facility
mix
Nagpur’s competitive advantage vis-à-vis
other airports
Air Transportation Liberalization trends
Intensification of International Trade
Economic Activity in the catchment area
Tourism Growth prospects in the region
 Future Air Traffic All India vs Nagpur
Air Passengers- Million Nos.

Year 2000 2010 2030

India
40 85 282
Nagpur
0.2 2 14

% share Nagpur 0.5 2.2 5

Air Cargo- Tons

Year 2000 2010 2030

India 8,00,000 20,40,000 69,00,000

Nagpur 910 53,300 8,70,000

% share
0.12 2.6 12.6
Nagpur

Source: TEFS conducted by Consortia of Consultants led by L&T Ramboll Consulting Engineers (MSRDC,2001)
 Appreciation of Model Hub
Airports abroad for preparing the
Master Plan
Dubai
Copenhagen
Zurich
Amsterdam
Luxembourg
Hong Kong
Singapore
Anchorage
Frankfurt
Cologne/Bonn
Sharjah
DUBAI INTERNATIONAL AIRPORT
- VIEW WHILE PROCEDING TO THE ARRIVALS AREA
DUBAI INTERNATIONAL AIRPORT
- LARGE & AESTHETICALLY DESIGNED PASSPOST CONTROL AREA
DUBAI INTERNATIONAL AIRPORT
- VIEW OF THE DUTY FREE SHOPPING AREA
DUBAI INTERNATIONAL AIRPORT
- HOTEL ABOVE THE PASSENGER TERMINAL BUILDING
DUBAI INTERNATIONAL AIRPORT
- VIEW OF ONE OF THE
CAFETARIA AS SEEN FROM
THE DUBAI INTERNATIONAL
HOTEL
Copenhagen International Airport
COPENHAGEN INTERNATIONAL AIRPORT
- SECURITY CONTROL
COPENHAGEN INTERNATIONAL AIRPORT
- AIRCRAFTS CONNECTED TO THE AEROBRIDGES ALONG ONE OF THE
PIERS
UNIQUE ZURICH AIRPORT
UNIQUE ZURICH AIRPORT
- VIEW OF AIRSIDE APRON AND MID-FIELD TERMINAL UNDER
CONSTRUCTION
UNIQUE ZURICH AIRPORT
- RETAIL ACTIVITY & REST PLACES IN TERMINAL ‘A’
SCHIPHOL INTERNATIONAL AIRPORT (AMSTERDAM)
- VIEW OF THE CONTROL TOWER BEHIND ONE OF THE PIERS
LUXEMBOURG –DE– AIRPORT
- FULLY COMPUTERIZED CARGO STACKING/ HANDLING SYSTEM
LUXEMBOURG –DE– AIRPORT
- ORGANISING STANDARD PELLET LOADS IN CARGO TERMINAL

Standard Pellet

Flexible platform to facilitate tranfer of pellets onto the fork lift vehicles
LUXEMBOURG –DE– AIRPORT
- CARGO BEING UNLOADED FROM THE TRUCK AT ONE OF THE 50+
TRUCKING BAYS AT THE CARGO TERMINAL
LUXEMBOURG –DE– AIRPORT
- TRUCKS PARKED OUTSIDE THE CARGO TERMINAL
LUXEMBOURG –DE– AIRPORT
- FULLY LOADED CARGOLUX PLANE
LUXEMBOURG –DE– AIRPORT
- FULLY LOADED CARGOLUX PLANE IN FRONT OF THE CARGO
TERMINAL - READY TO TAKE-OFF
CHEP LEP KOK AIRPORT – HONG KONG
CHEP LEP KOK AIRPORT – AIRPORT EXPRESS TERMINAL STATION
CHEP LEP KOK AIRPORT – HONG KONG

AIRPORT EXPRESS STATION

BUS TERMINAL
CHEP LEP KOK AIRPORT – People Mover in Arrival Area
CHEP LEP KOK AIRPORT – Departure Lounge
CHEP LEP KOK AIRPORT – Departures Terminal
CHEP LEP KOK AIRPORT
SINGAPORE (Changi International Airport)
– Arrival into Terminal 1
SINGAPORE (Changi International Airport)
SINGAPORE (Changi International Airport)
SINGAPORE (Changi International Airport)
MRT Systems connecting Airport
Baggage Handling Systems
Cargo Handling Systems
High Tech signage/Information system
Master Plan
of Multi-Modal
International
Hub Airport at
Nagpur
Area statement (Area in Ha)
Airport proper 937
Airport Facilities Complex (out side SEZ) 245
Area in front of Terminal Building (within SEZ) 235
ICT and TT 195
Value Added Commercial Services Complex 470
MIHAN Utility and Green Belt Area 72
MIHAN Staff Residential Complex 77
MIHAN Maintenance Complex 99
Infrastructure (Interchange/Expressway/Peripheral Roads) 123
PAP Resettlement Area 63
MRTS Car Shed Maintenance Facility 19
Airforce Area 400
TOTAL 2935

The status of land acquisition is as follows :

Area already in possession / acquired 379 + 278 = 657
Area already notified 965
Area yet to be notified 1313
TOTAL 2935
GUIDING PRINCIPLES FOR PLANNING

International Flights to be able to

take-off within 30 minutes of landing
A passenger will love to miss the first
flight
Cargo to be dispatched within 12
hours of arrival
OBJECTIVES
An attractive hub Airport
Financially viable bankable project
Minimum social and environmental
impact
Develop self-generating traffic
Aerial view of Airport
AERIAL VIEW
AIRSIDE VIEW
Landside View - one module of the
Terminal Building
Departure Floor
Pick Up and Set Down Area
SALIENT FEATURES OF THE PROJECT
MIHAN project area – 2535 Hectares
Runways – Existing runway to be extended to 4000m length and
60m width; Provision made for an additional parallel runway
4000mx60m
Terminal facilities: a semi-circular terminal building 3,00,000 sqm
area with an outer diameter of 810m. Separate international and
domestic cargo terminals.
Aircraft Parking - 50 aircrafts in the Terminal & 50 aircrafts remote.
Projected Traffic: 14 million passengers a year (70% international)
and 8,70,000 tons of cargo (90% international) a year.
Type of Airport – International Hub Airport for Passengers & Cargo
Type of connectivity - Multi-Modal Airport, Railway Terminal for
Passengers & Goods, Truck Terminal, MRTS Terminal all in one
Project
FACILITIES
Easy access from National Highway, Railway routes and
network of high capacity roads/ expressway and MRTS
connecting Nagpur City and Butibori industrial estate.
Special Economic Zone(SEZ) – entire MIHAN Complex
to be declared as SEZ
Container Terminal with Railway sidings - domestic &
international
Truck Terminal
Freighter Village, warehouses
Aircraft Engineering Maintenance Base- Airline
managed, Third Party managed
FACILITIES ….contd.,
Convention & Exhibition Centers
Value-Added Commercial Services Complex -
Repackaging, Distribution, Finance & banking
institutions, Software Park, Insurance Park, etc.
Passenger Amenities - Hotels, Restaurants, Duty free
shopping Centers
Entertainment Facilities- Multiplexes, Theme Park, Golf
Course, Flying Club etc.
Residential facilities for employees working in MIHAN
Complex
SPECIAL ECONOMIC ZONE (SEZ)
Specifically delineated duty free enclave
Deemed foreign territory for the purpose of trade
operations
Enable international flights to land and take-off
without any bilateral agreements
Not subject to any pre-determined value addition,
export obligation, input output/wastage norms
Can be set up in the private/ public/ joint sector or
by the State Government
Eligible for a number of fiscal concessions related
to customs, excise and taxes
No licensing requirements and ceiling on domestic
sales
MAJOR BENEFITS
Various types of tax and duty concessions within SEZ
Efficient operating norms for the Airport-Aircraft turn-
around time, Passenger walk-through time, cargo clearance
time etc.
All infrastructure facilities available - power , water,
telecommunications, computer connectivity etc.
Economic benefits to the Vidarbha Region and Nagpur City
and the overall Country through the International and
Domestic Hub.
Development of Hinterland through multi-modal
connectivity to the other parts of the Country.
Economic Benefits
Increase in Exports
Wealth Creation
Employment creation
Increase in revenues from tourists
Value addition
Fiscal benefits to the Central and State
Government
 Economic & Fiscal Benefits
Cumulative Net Economic Value Added to the region Rs. 522254 Million till 2035
Cumulative Additional Tourism Revenue due to Rs. 52620 Million till 2035
MIHAN
Cumulative Additional Exports due to MIHAN Rs. 54000 Million till 2035
Employment generated in airport, allied activities and 94000 Jobs by 2035
tourism
Average Employment generated in construction activity 1.6 Million man-days per annum.
EIRR 33%
Fiscal Benefits
Cumulative fiscal benefits to State Government (sales Rs. 10326 Million (till 2035)
tax, stamp duty, professional tax, turnover tax, etc.)
Cumulative fiscal benefits to Central Government Rs. 31169 Million (till 2035)
(income tax, excise duty, customs duty, airport taxes,
etc.) with existing share of airport taxes
Cumulative fiscal benefits to Central Government Rs. 21689 Million (till 2035)
(income tax, excise duty, customs duty, airport taxes,
etc.) with proposed share of airport taxes
FINANCIAL & ECONOMIC HIGHLIGHTS

The total project cost is Rs.25810 million over 30

years
The total investment required in various facilities
in the MIHAN Project area by other agencies is
approximately Rs.26000 million till 2035
The project is viable with an IRR of 15.8%
The Net Economic Value added to the region till
2035 will be Rs.522,254 million, apart from the
creation of thousands of jobs
Employment generated in airport, allied activities
and tourism
Capital Cost of the Project (2002 prices in Rs. Millions)
Classification 2002 - 06 2007 -15 2016 - 25 2026 - 35 Total
Movement Area (Runways) 769 787 484 452 2492
Terminal Complex 3208 2210 3443 2743 11604
Flight Control 562 60 60 60 742
Utilities 275 125 135 144 679
Pre-operational, temp. works & tests 590 - - - 590
Contingencies 303 385 432 348 1468
Design & project supervision 146 92 92 84 414
MIHAN roads & infrastructure 800 735 400 64 1999
Other MIHAN costs(rail, cargo, green belt, SEZ 788 2 222 - 1013
fence etc)
Contribution towards off site infrastructure 1200 - - - 1200
Reconstruction of shifted airforce building 150 - - - 150
Contribution to MRTS - 1000 - - 1000
Land acquisition & resettlement 2460 - - - 2460
Total 11251 5396 5268 3894 25810
IMPORTANT KEY DRIVERS
Formation of a dedicated SPV for implementation
Declaration of entire Airport complex as SEZ
Aviation policy issues- favourable decision at an early date
Taxes & other concessions, early approvals from GOM,
GOI
Operations by a strong O & M agency
GOM drive for development of Vidarbha Region and
Nagpur City for improvement of O-D traffic
Drive to improve tourism potential
Transfer of land and Airport assets to SPV at an early date
Development of a strong Home Carrier for the
development of Hub Traffic
ORGANISATION STRUCTURE PROPOSED

& NIT
Financing Structure
Entirely through Bonds raised by the JV as in
the case of other projects successfully
implemented by MSRDC
Public-Private Partnership (PPP) with equity
from govt. agencies
Sources for Raising funds:
 Privately placed bonds with institutions
 Long-term debt from domestic Financial
Institutions such as HUDCO, IDBI, ICICI, etc.
 Assistance from Multilateral Agencies
Status of the Project
Techno-Economic Feasibility Report submitted, presented
in various forums and approved by State Cabinet
Project approved by the Govt. of Maharashtra
Field work – completed Topographic Surveys, Soil investi-
gation, collection of land records, environ & social surveys
Approvals of Govt. of India requested
Declaring Nagpur Airport as a International Gateway
Airport
Declaring MIHAN area as SEZ
Transferring of existing Airport to MADC
Formation of Special Purpose Company, Maharashtra
Airport Development Company (MADC) taken up
IMPLEMENTATION PLAN
MSRDC to be declared as Special Planning Authority for
MIHAN notified area.
Government of Maharashtra to set up a Special Purpose
Company - Maharashtra Airport Development Company
with MSRDC in lead for speedier implementation of the
MIHAN project.
Equity participation in the SPV from govt. agencies –
MSRDC, CIDCO, NIT, MIDC, CONCOR, AAI, etc. & FIs.
MADC to implement the project with private participation
(Developers/Operators, Airlines, Logistics Providers etc.)
by forming project specific SPV (NAC - Nagpur Airport
Company).
First phase of the Project to be commissioned by 2005