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Patel to ensure that US-based Boeing comes up with MRO

The minister pointed out that both the parties should try to settle the dispute immediately in their interest, reports Pradip Kumar Maitra.
None | By Pradip Kumar Maitra, Nagpur
PUBLISHED ON JAN 27, 2007 05:41 PM IST

The Union Minister of state for Civil Aviation, Praful Patel made it clear that he would ensure that the US-based Boeing comes up with its maintenance, repair and overhaul; (MRO) unit at Nagpur.

Reacting to the Maharashtra Airport Development Company Limited (MADC) asking the US aviation company to reduce its demand for land, the minister pointed out that both the parties should try to settle the dispute immediately in their interest.

"Boeing and the state government had singed a memorandum of understanding (MoU) for setting up of a unit at Nagpur. Now it is the duty of the state government to follow up the matter with the firm," Patel said.

Boeing's decision to set up a Rs 450-crore MRO facility in Nagpur, however, apparently run into rough weather with the MADC asking the aircraft company to reduce its demand for land by half. The Boeing had insisted for a land of 80 acres to set up its MRO unit at Nagpur while RC Sinha, the Managing Director of MADC, believed the demand for 80 acres from the company was not practical. Across the world several major MROs were built on land much less than what the Boeing was demanding, said Sinha, listing similar facilities at Frankfurt (30) and Singapore (35 acres) as examples.

"We cannot give them more than 35 acres. There is no justification from Boeing and, hence their demand is pending," Sinha informed during his recent Nagpur visit.

Patel, who was instrumental for the setting up of multi-modal international cargo hub (MIHAN) at Nagpur, insisted for expedition of the land acquisition process for the project.

He informed that conversion of some passenger aircrafts into cargo was on and freight services from Nagpur would start from this year itself.

Meanwhile, an unprecedented business momentum comes in the city from the setting up of the multi-modal cargo hub and a special economic zone, adjacent to the project.

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