Maharashtra Cabinet Greenlights Rs 3,994 Crore for Mihan Project Development
The Maharashtra state cabinet has recently approved a revised cost estimate of Rs 3,994 crore for the ambitious Mihan project in Nagpur, marking a significant escalation from the initial outlay of around Rs 1,000 crore. According to Revenue Minister and Nagpur Guardian Minister Chandrashekhar Bawankule, the government has already expended approximately Rs 2,400 crore on this initiative to date. This approved amount represents the upper expenditure limit for the project, ensuring financial discipline and transparency in its execution.
Major Cost Components and Compensation Details
The primary cost drivers for the Mihan project include land acquisition, rehabilitation efforts, and compensation payments to project-affected persons (PAPs). Specifically, the government has allocated Rs 781 crore towards compensating oustees from Khapri, Dahegaon Telhara, and Kalkuhi villages. In the current fiscal year, a demand of Rs 400 crore was raised, with Rs 240 crore already released; the remaining funds are anticipated before the fiscal year concludes, as noted in a district information office report.
Resolution of Oustee Issues and Development Charges
During a meeting chaired by Minister Bawankule on Friday to address the grievances of PAPs, it was announced that long-pending issues are expected to be resolved promptly. A key resolution involves allotting developed plots equivalent to 12.5% of the farm holdings acquired for the Mihan project. Additionally, a dispute over development charges has been settled, with the fee reduced to Rs 50 per square foot from the previous Rs 140. This reduction enables oustees to more easily acquire plots, which can command market rates of up to Rs 4,000 per square foot, by paying a nominal development fee. These plots are situated in Chichdbhuvan, proximate to the project site.
Legal Proceedings and Additional Compensation
Minister Bawankule highlighted that some oustees pursued legal action seeking enhanced compensation and were successful in court. Consequently, the government is obligated to disburse an additional Rs 160 crore for such payments within this fiscal year, with another Rs 597 crore earmarked for the next financial year. Furthermore, individuals residing on government land in affected villages will receive assistance of Rs 2.5 lakh for home construction, addressing their housing needs comprehensively.
Progress on Infrastructure and Encroachment Removal
The removal of structures and encroachments in Shivangaon village, as part of the airport expansion linked to the Mihan project, is anticipated to be completed soon, facilitating smoother project advancement. This step is crucial for ensuring the project's infrastructure development proceeds without hindrances.
Related Development: Farm Loan Waiver Report Expected
In a related note, Revenue Minister Chandrashekhar Bawankule mentioned that an expert committee led by Praveen Pardesi, Chief Economic Advisor to the chief minister, is expected to submit its report on the farm loan waiver scheme around the state budget. Based on the findings, the government plans to make a decision promptly, as the scheme must be implemented before June 2026. This committee was established following protests by farmers, led by former Achalpur MLA Bachu Kadu, on highways in Nagpur, underscoring the ongoing agricultural concerns in the region.
