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Tier II cities, beneficiary of recession?

By e4p correspondent, Monday, January 05, 2009, 12:56 Hrs  [IST] |
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 Category: SEZ / Industrial Parks Tags: MIHAN, MADC, cheaper in SEZ in Nagpur, Mantri Realty private SEZ project Mihan | Share: Share/Save/Bookmark

Even though projects in metros across India have been hard hit, tier II cities are reaping rich benefits. How does that happen?

The logistics are simple. Land, the primary commodity needed to set up any project is much cheaper in SEZ’s in Nagpur, which is now considered the10th economically fastest growing urban centre of India.

Apart from 50 companies already in the process of investing in the Multimodal International Hub Airport at Nagpur (MIHAN), fresh enquiries are pouring in from metro centres to buy plots of land,'' revealed Abdul Abid Ruhi, project manager of Maharashtra Airport Development Company Limited (MADC), the nodal agency for Mihan which is presently in the process of finalising a deal with the world's biggest European hotel chain-Accor-for setting up three and four star hotels within the SEZ.

Shrikant Laddha and Rupesh Mowade, president and project manager respectively for Mantri Realty's private SEZ project coming up near Mihan, said though they were skeptical about completing construction target within the stipulated period due to the global economic slowdown, top banners like Biocon and Satyam were negotiating their deals with the company for setting up their units besides 20 fresh enquiries. However, they refused to reveal other names.

 MADC's Ruhi said the quota of land reserved for IT companies in Mihan is over. "But recently, there were four enquiries from firms in Kolkata ana Mumbai for buying land in the non-IT sector. Despite recession, a contract has been awarded to US's John Hopkins for constructing a 2,500-bed hospital in Mihan,'' said Ruhi.

According to him, as of now, there are no indications of putting on hold the construction plans by major investors. "Satyam will start construction by February next year while SICAL Logistics will begin work on its project from January 2009. Developments by L&T are also expected soon,'' said Ruhi and his chief engineer colleague S V Chahande.

MADC superintending engineer S K Chatterjee said companies like DLF, Shapoorji Pallonji Info City, Tal Manufacturing Solutions Ltd (Tata's dream airliner project) and Caliber Point have maintained their pace of work with no indication of backtracking from their schedule. So far, 50 internationally acclaimed companies promise investment of Rs 15,000 crore in Mihan.


Source : Times Of India
 

 
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