In one of the biggest compensation packages in recent times, the state government is likely to give Rs1.5 crore per hectare to Mihan project-affected persons to ensure speedy construction of the second runway at the air cargo hub in Nagpur.
In its board meeting on Friday, the Maharashtra Airport Development Corporation (MADC), the agency incharge of the project, put this up for approval before the state government.
The MADC has to acquire 146 hectares across five villages for building the second runway.
This is the first time the state government-promoted project will be offering high compensation package to the landowners. This compensation will burn a hole of Rs219 crore in the state coffers.
"The chief minister had asked MADC officials to negotiate with the locals for a compensation package. This is the price that was arrived at through consensus. We are yet to get the final approval of the government," said UPS Madan, managing director, MADC.
Madan said the compensation was close to the ready reckoner rate in the area as the land prices had increased after the Mihan project was announced.
The air cargo hub is seen as a project that will change the face of Nagpur and its surrounding area.