The correct answer is Nagpur. 

• MIHAN project is being developed in Nagpur district.
• MIHAN stands for Multi-Modal International Passenger and Hub Airport at Nagpur.
• The project also consists of setting up a Multi-Product SEZ adjacent to the Airport.
• It was envisaged by the Government of Maharashtra.
• Objective - To remove the development backlog of the Vidharbha Region and harnessing the potential of the existing Dr. Baba Saheb Ambedkar Airport at Nagpur. 
• Implementation - By Mihan India Ltd (MIL), a newly formed joint venture entity of the Airports Authority of India (AAI) and Maharashtra Airport Development Company (MDAC).
• Nagpur is the second capital of Maharashtra and located at the geographical center of the country, which is accessible by roads, railway, and airways.
• The multiproduct Special economic zone (SEZ) is also being set up with a focus on the aviation and aerospace sector.

• The SEZ is being developed by MADC.
• Maharashtra Airport Development Company Limited (MADC) was constituted in the year 2002 by the Government of Maharashtra.
• It is a special purpose company to develop Multi-modal International Hub Airport at Nagpur (MIHAN) and Aviation Infrastructure in the State of Maharashtra to provide regional air connectivity.

 Special Economic Zones

• ​The Special Economic Zones act, 2005 provides for the establishment, development, and management of the Special Economic Zones for the promotion of exports.
• Objective 
  1. Generation of additional economic activity.
  2. Promotion of exports of goods and services.
  3. Promotion of investment from domestic and foreign sources.
  4. Creation of employment opportunities.
  5. Development of infrastructure facilities.
• SEZs are foreign territory for the purposes of trade operations, duties, and tariffs.