Himachal Pradesh government’s bold move: Announced a plan to build a medical device park in Nalagarh, Solan district using own resources, opted to return the assistance of Rs 30 crore received from the Centre
Shimla, July 26: Taking a decisive step to prioritise the interests of Himachal Pradesh, the Himachal Pradesh government has announced plans to build a Medical Device Park at Nalagarh in Solan district using its own resources. This ambitious project spread over 265 acres and estimated to cost Rs 350 crore will be fully funded by the Himachal Pradesh government. In line with this decision, Himachal Pradesh has opted to return the assistance of Rs 30 crore initially received from the Central government for the project.
The Himachal Pradesh government’s choice to return the central assistance is due to the stringent conditions attached to the funding. These conditions required the industrialists to provide land at a highly subsidised rate of Rs 1 per square metre, electricity at Rs 3 per unit, as well as free water, maintenance and warehousing facilities for ten years. Moreover, most of the equipment manufactured in the park would be sold outside the state, leading to a direct loss to the state exchequer due to the Non-State Goods and Services Tax (NSGST).
By choosing to finance the project independently, the Himachal Pradesh government expects substantial financial gains. The sale of land and other resources is expected to generate around Rs 500 crore for the state over the next 5-7 years. Additionally, the state will provide incentives to industries setting up operations in the Medical Device Park as per its industrial policy.
Chief Minister Thakur Sukhvinder Singh Sukhu expressed the State’s commitment to safeguard its resources and ensure their optimum utilisation for the benefit of its residents. “The present State Government will not allow the plunder of Himachal Pradesh’s resources at any cost. The people of Himachal Pradesh have the right over these resources and the State Government will take every step to safeguard the interests of the people of the State. Chief Minister Sukhu said that if the funds received from the Central Government are not returned, then industrialists will have to pay compulsory incentives, which will put a huge burden on the State exchequer and lead to loss of revenue.
The state government has already released Rs 74.95 crore for the project and is giving priority to its construction. The initiative follows a similar approach for the bulk drug park at Haroli in Una district, where the state government has opted not to seek assistance from private agencies and is providing Rs 1,000 crore from its own resources for the development of the park.
For the construction of the medical device park in Nalagarh, the state government plans to obtain a loan from Small Industries Development Bank of India (SIDBI) under the cluster development scheme. The project will be restructured so that 25 per cent of the land is allocated exclusively for medical device industries and 75 per cent for other strategic industries, ensuring comprehensive industrial development in the region. This industrial park aims to become a state-of-the-art industrial hub, which will significantly contribute to the economic development and infrastructure improvement of the state in the coming years.
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